Pakistan Rejects a $490 Million ITFC Loan
The country is now looking for financing on more competitive terms.
Pakistan has rejected a $490 million ITFC loan from the International Islamic Trade Finance Corporation, part of the Islamic Development Bank Group, because the proposed borrowing cost was too high. The facility carried an estimated 8% financing cost, while the government was targeting around 6%.
The rejection does not remove the wider funding gap. Projected needs for FY2026-27 are Rs. 28.647 trillion.
What happens after the ITFC loan rejection
Pakistan is now seeking alternative financing on more competitive terms. The search is for a cheaper facility, not a decision to stop borrowing altogether. The 8% estimate is the reason given for turning this offer down.
Our verdict
The offer was $490 million at an estimated 8%, against a target of about 6%. Pakistan has said no and is looking for a cheaper alternative, even with Rs. 28.647 trillion of projected funding needs in FY2026-27.
Follow for more updates.
Frequently asked questions
How large was the offer?
$490 million, from the International Islamic Trade Finance Corporation.
What is ITFC?
It is part of the Islamic Development Bank Group.
Why was the loan rejected?
The estimated financing cost was 8%, and the government was targeting around 6%.
Does Pakistan still need funds?
Yes. It is seeking alternative financing, and projected funding needs for FY2026-27 are Rs. 28.647 trillion.
- #Enable Pakistan 22
- #ITFC loan
- #ITFC loan Pakistan
- #Islamic Development Bank Group
- #Pakistan financing cost
- #FY2026-27 funding
Written by
Enable PakistanGet stories like this in your inbox
The day's top stories, every morning. Free, unsubscribe any time.
