Pakistan has reportedly declined a loan offer from a prominent international commercial bank, citing the exceptionally high interest rate of 11%. The decision comes amidst growing concerns about the country’s mounting external debt and the burden of high-interest payments. According to sources, the Ministry of Finance opted to explore other avenues of borrowing, including concessional loans from international financial institutions such as the IMF and World Bank, which offer more favorable terms.
Pakistan’s economy continues to face significant challenges, with inflation, rising fuel prices, and a depreciating rupee putting pressure on the government. Experts believe that taking on expensive commercial loans would only exacerbate the debt crisis. Instead, there are growing calls for the government to focus on boosting exports, increasing foreign remittances, and encouraging foreign direct investment to stabilize the economy.
