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Pakistan Secures $4.5 Billion to Combat Debt Crisis

6/22/2025

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Summary

Story summary

On June 21, 2025, Pakistan celebrated a significant breakthrough, securing a Rs1.275 trillion ($4.5 billion) Shariah-compliant financing package. This strategic move, orchestrated by 18 banks, aims to tackle the circular debt crisis while protecting electricity consumers from new burdens. By refinancing existing debts and settling overdue payments to Independent Power Producers, the nation takes a crucial step towards financial stability.

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Story summary

On June 21, 2025, Pakistan celebrated a significant breakthrough, securing a Rs1.275 trillion ($4.5 billion) Shariah-compliant financing package. This strategic move, orchestrated by 18 banks, aims to tackle the circular debt crisis while protecting electricity consumers from new burdens. By refinancing existing debts and settling overdue payments to Independent Power Producers, the nation takes a crucial step towards financial stability.