Pakistan Progressing with IMF Loan Approval

By Ariba Shahid
KARACHI (Reuters) – Pakistan is making significant progress with the International Monetary Fund (IMF) and aims for board approval in September for a new $7 billion loan program, stated Finance Minister Muhammad Aurangzeb on Wednesday.

Pakistan and the IMF reached an agreement on the 37-month loan program in July, which is subject to approval from the IMF’s executive board along with timely confirmation of financing assurances from Pakistan’s development and bilateral partners.

“We are making good progress with IMF for Board approval in September,” Aurangzeb communicated in a text message to Reuters.

The country is currently in discussions with Saudi Arabia, the United Arab Emirates, and China to fulfill its financing needs under the IMF program. Aurangzeb mentioned these talks after a visit to China aimed at seeking debt reprofiling for the energy sector.

In the past, rollovers or disbursements from Pakistan’s long-time allies, combined with IMF financing, have helped the nation meet its external financial obligations.

The IMF has yet to respond to a Reuters inquiry regarding Pakistan’s external financing requirements and the upcoming executive board meeting concerning the loan program.

In July, during an analyst briefing following the central bank’s decision to cut rates by 100 bps, the bank chief projected rollovers of $16.3 billion for the fiscal year ending June 2025, which would account for more than half of Pakistan’s $26.2 billion external financing requirement.