Overview

• Islamabad hosted the signing with a consortium of 18 banks, which Prime Minister Shehbaz Sharif witnessed virtually from New York.
• The facility combines Rs659.6 billion in restructured bank exposure with Rs565.4 billion in fresh financing to clear overdue payments to power producers and legacy PHL liabilities.
• The arrangement redirects the already-in-place surcharge to service the loans in 24 quarterly instalments, with reported annual recoveries of about Rs323 billion from bills.
• Roughly Rs660 billion in sovereign guarantees are being released, which the banking industry says will free capacity for lending to agriculture, SMEs, housing, education and healthcare.
• Loans are priced at 3‑month KIBOR minus 0.9 for six years, and reports indicate the circular-debt stock could fall toward about Rs339 billion as cumulative consumer-funded repayments may total up to roughly Rs1.9 trillion.