The Sen Live

Pakistan continues to borrow money: this time $1b from Islamic Development Bank

As Pakistan continued its trend of looking for a helping hand to increase foreign exchange reserves, this time will take a loan of $1billion from Islamic Development Bank (IDB) and ask China to extend its term of the previous $1billion loan it detained earlier. The move has also been taken to support rupee against Dollar by raising $2billion in its foreign resources in the financial year 2015-16. According to an official from the Ministry of Finance, the government will take $1billion from from International Islamic Trade Finance Corporation (ITFC) of the Islamic Development Bank to finance crude oil imports, which will lend the money under a short-term Murabaha financing arrangement.

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