The International Monetary Fund (IMF) has officially included Pakistan’s agenda in its Executive Board meeting scheduled for September 25.
Pakistan is seeking a $7 billion loan under the Extended Fund Facility (EFF) to help stabilize its economy.
The international lender has released its meeting calendar, confirming that Pakistan’s request will be up for discussion. If the loan is approved, Pakistan is expected to begin receiving installments from the financial assistance package shortly after.
This request follows a stand-by agreement between Pakistan and the IMF, which was reached on July 12. The new IMF loan program is designed to span 37 months, providing Pakistan with financial support to meet its economic challenges and ensure stability.
Earlier last week, IMF Director of Communications, Julia Kozack, while addressing a presser said that the IMF is set to hold an Executive Board meeting on September 25, during which Pakistan’s new loan program could receive approval.
According to Kozack, the IMF's discussions with Pakistan were successfully concluded in July, focusing on a potential $7 billion loan package. The program aims to support Pakistan's economic reforms and stability efforts amid ongoing fiscal challenges.
“The IMF is expected to review and possibly approve the loan program for Pakistan during the board meeting on September 25,” Kozack stated, underscoring the importance of the upcoming session for the country’s financial outlook.
On the other hand, the State Bank of Pakistan (SBP) has made arrangements to address the country’s external financing gap, confirmed SBP Governor Jameel Ahmed during an analyst briefing following the recent monetary policy announcement.
The briefing, aimed at providing insights into the nation’s financial situation, highlighted ongoing efforts to stabilize the economy.
Governor Ahmed expressed optimism regarding the approval of the loan program from the International Monetary Fund (IMF), which is expected to be finalised this month. The loan is crucial for Pakistan as it faces challenges in bridging its external financing gap, which currently stands at $2 billion.
In addition to efforts with the IMF, Pakistan is in the midst of discussions with friendly nations for debt rollovers, which are expected to ease some of the financial strain. Sources indicate that these talks are progressing positively, offering further support to Pakistan’s economic recovery plan.
A spokesperson for the SBP confirmed the discussions and reiterated the government's focus on meeting the external financing requirements through a mix of debt rollovers and additional financial assistance from international partners.
Earlier in July, Pakistan reached a staff-level agreement for a new $7 billion loan deal, the International Monetary Fund said Friday, the country’s latest turn to the global lender for help in propping up its economy and dealing with its debts through big bailouts.
