Govt takes new $300m commercial loan

Pakistan has taken a $300 million commercial loan at interest rates ranging from 7.2% to 7.7% - the first new non-Chinese financing facility in years, which will help meet external financing requirements of the International Monetary Fund (IMF) programme. Government sources said that the country had taken a foreign source-based loan from United Bank Limited (UBL). The bank has arranged the facility from Gulf countries. A loan of $250 million has been arranged at an interest rate of one-year Secured Overnight Financing Rate (SOFR) plus 3% margin. This translates into roughly 7.2%. The loan will be paid back in less than one year, they added. Another $50 million is being availed at one-year SOFR plus 3.5%, which is equal to 7.7% at today's rates, the sources said.