The loan agreements consist of one bilateral loan and one for trade finance, both classified as short-term loans lasting up to one year.

These loans aim to provide temporary relief as Pakistan grapples with economic challenges, including a depreciating currency and rising external debt obligations.

This financing is part of Pakistan's broader strategy to improve its financial situation following a $7 billion bailout from the International Monetary Fund (IMF) in September 2024.

The IMF's EFF aims to assist countries like Pakistan facing significant balance of payments challenges due to structural weaknesses.

The finance minister highlighted improvements in economic indicators, including a drop in inflation to 4.1% and a current account surplus for three consecutive months.

Pakistan aims for economic revival through privatization, reduced interest rates, and increased exports to achieve a 6% growth rate in the coming years.

Pakistan has secured a $1 billion loan from two Middle Eastern banks, announced by Finance Minister Muhammad Aurangzeb during the World Economic Forum in Davos.

The first review of the IMF Extended Fund Facility (EFF) program is scheduled for late February 2025, with Aurangzeb expressing confidence in the country's progress ahead of this assessment.

In the first half of fiscal year 2025, Pakistan's IT sector grew by 28 percent year-on-year, and foreign direct investment increased by 20 percent, indicating renewed investor confidence.

A collaboration with the World Bank has led to a $20 billion initiative focusing on health, education, poverty alleviation, and climate resilience.

During the WEF summit, Aurangzeb invited global investors to support Pakistan's economic growth in key sectors such as agriculture, IT, renewable energy, and pharmaceuticals.

The selection process for approximately 950 Hajj support staff will begin on January 25, 2025, to assist over 170,200 Pakistani pilgrims expected for the Hajj pilgrimage this year.