Pakistan’s Finance Minister Still Confident on IMF Deal

ISLAMABAD September 05, 2024 (TDI): Pakistan Finance Minister Muhammad Aurangzeb expressed confidence on Thursday regarding the progress of ongoing discussions with the International Monetary Fund (IMF) on securing a multibillion-dollar loan Programme.

Speaking informally to journalists, the minister shared that negotiations for the approval of the IMF loan deal are nearing completion.

“The discussions with the IMF concerning external financing are expected to be finalized soon,” Aurangzeb said.

He said that the process for obtaining approval from the IMF Executive Board is advancing smoothly. “We are in the final stages of securing approval from the Executive Board, which we anticipate will happen soon.

While we can’t provide an exact date, we expect the loan Programme to be approved by the end of this month,” he added.

Aurangzeb also pointed to ongoing talks with Saudi Arabia for an oil facility that would allow deferred payments, noting that both nations are exploring investment opportunities in various projects.

In addition to engaging with friendly countries, the minister confirmed that the government is in talks with commercial entities to explore further financing options.

On Tuesday evening, virtual discussions were held between officials from the Finance Ministry and the IMF mission, focusing on key issues such as external financing and revenue generation.

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During the talks, Finance Ministry officials updated the IMF on efforts to secure external financing, including loan rollovers and new financial commitments from friendly nations.

Sources revealed that a timeline has been provided to the IMF, with loan rollovers expected to be completed by next week.

The IMF mission underscored the importance of rolling over $12 billion in debt before the loan can be approved by the Executive Board.

Moreover, the IMF urged the Federal Board of Revenue (FBR) to meet its monthly revenue targets and requested a detailed plan to address the shortfall and ensure the targets are achieved.