ISLAMABAD: The International Monetary Fund (IMF) executive board is scheduled to meet on September 25 to review a $7 billion loan Program agreed upon with Pakistan earlier this year, an IMF spokesperson announced on Thursday.
This comes as Prime Minister Shehbaz Sharif praised “friendly” countries for their support in meeting the IMF’s requirements.
Islamabad reached a staff-level agreement with the IMF in July, but the approval of the 37-month loan Program for Pakistan by the IMF board has been pending since then.
The previous $3 billion IMF Program helped Pakistan avoid a sovereign default last year amid a severe drop in foreign exchange reserves, currency devaluation, and record inflation.
IMF spokesperson Julie Kozack confirmed the board meeting’s date, stating it follows Pakistan securing necessary financing assurances from its development partners.
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The announcement came shortly after Prime Minister Sharif expressed gratitude to “friendly and brotherly” nations for their support.
During a federal cabinet meeting, Sharif acknowledged the efforts of various stakeholders, including the finance minister, government institutions, and Pakistan’s ambassador in China, though he refrained from providing specific details.
Historically, Pakistan has depended on financial aid from China, Saudi Arabia, and the United Arab Emirates to meet external financing needs and prevent default.
On Thursday, Pakistan’s sovereign dollar bonds saw a slight increase, with the 2031 maturity trading at 79.93 cents on the dollar.
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Sharif highlighted that Pakistan’s economy would benefit significantly if the monetary policy rate aligned with the inflation rate.
He also noted that discussions with the IMF were progressing positively and that decisions regarding the growth rate would be made once the Program is finalized.
Pakistan has faced recurring economic challenges, leading to 22 IMF bailouts since 1958.
The current economic crisis is one of the most prolonged, marked by unprecedented inflation levels, and has pushed the country close to default before securing the latest IMF bailout.
The new bailout conditions include tougher measures, such as increased taxes on farm incomes and higher electricity prices, aimed at ensuring stability and promoting inclusive growth in the crisis-stricken country.
