The International Monetary Fund (IMF) has clarified that it did not advise Pakistan to secure a commercial loan from a bank at an interest rate of 11 percent. An IMF spokeswoman stated, “That’s not in our knowledge that commercial buying at 11% has been undertaken, and such financing is not necessary for program financing assurances.”

Earlier this month, Pakistan obtained a $600 million commercial loan from a European bank, marking the highest interest rate in the country’s history. At the time, it was reported that this financing was crucial for securing a $7 billion bailout from the IMF.

The IMF’s executive board approved the much-anticipated bailout on Wednesday, providing critical financial support to Pakistan.

Initially, the Ministry of Finance expressed reservations about finalizing the loan agreement due to concerns over its potential impact on future foreign commercial borrowing. However, the ministry ultimately proceeded with the agreement, underscoring the urgent need for financial assistance.