Islamabad – The U.S. EXIM Bank and the Islamic Development Bank (IDB) would extend financing facility totaling $120 million to the national flag-carrier, Pakistan International Airlines, to be used for overhauling engines of PIA planes.

A delegation of Citi Bank, which has arranged the financing facility from the two institutions, met Pakistan’s Finance Minister Ishaq Dar on April 1, and informed him that the U.S. EXIM Bank had undertaken financing activity in Pakistan after the gap of seven years, according to an official government statement.

The approval of the financing facility for Pakistan “reflected growing confidence of international institutions and foreign stakeholders in Pakistan’s improved economic statur”. The financing amount would be used for overhauling engines of PIA planes by General Electric Company.

Dar briefed the delegation about the engagement of international financial institutions, including the World Bank and the IMF, which have been encouraged by stability in the country’s national economy.

Pakistan in September, 2013 secured $6.6 billion loan from the International Monetary Fund under its 3-year Extended Fund Facility to help meet its immediate international financial commitments and have successfully completed the following IMF reviews to remain on track for the program.

In February this year, the World Bank informed Pakistan that it has become eligible to avail $2 billion worth of IBRD funding to be used during four year period of fiscal years 2015-2019. The facility has been restored after the gap of three years.

Pakistan last year re-entered the capital market through issuance of sovereign paper and divestment of shares in public owned entities. In April, 2014, Pakistan raised $2 billion through sale of 5-year Eurobonds with a markup of 7.25% and another $1 billion through 10-year bonds with 8.25% interest.