Debt office declines one-year $490m ITFC credit over pricing

The Finance Ministry’s Debt Management Office last week refused a $490 million, one-year ITFC commercial facility tied to the IsDB Group.

Officials had aimed for about 6% interest cost; the lender’s all-in price near 8% was dearer than the December 2027 bond’s 6.1% market yield.

Economic Affairs has been told to seek a cheaper replacement from the ITFC or another creditor.

FY2026-27 gross financing needs are put at Rs28.647 trillion, about a fifth of GDP; net external borrowing is pegged at Rs813 billion ($2.8 billion).

In September Pakistan sold $3 billion in Eurobonds at 7.5% and 7.9%; a $300 million UBL facility was arranged in August.

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