Pakistan optimistic about IMF loan approval in Sept.
Pakistan’s Finance Minister Muhammad Aurangzeb expressed optimism on Wednesday that Pakistan will secure board approval for a new $7 billion loan programme from the International Monetary Fund (IMF) in September.
Pakistan and the IMF reached an agreement on the 37-month loan programme in July, subject to approval from the IMF’s executive board and confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.
Aurangzeb stated in a text message to Reuters that Pakistan is making significant progress with the IMF towards securing board approval.
He said in July following a trip to China to seek debt reprofiling for the energy sector that Pakistan is actively negotiating with Saudi Arabia, the United Arab Emirates, and China to meet its gross financing needs under the IMF programme.
In addition to IMF financing, rollovers or disbursements on loans from Pakistan’s long-standing allies have been instrumental in meeting its external financing needs in the past.
The IMF did not immediately respond to a Reuters request for comment on Pakistan’s external financing needs or the upcoming executive board meeting on the loan program.
During an analyst briefing after the central bank’s 100 basis points rate cut in July, the central bank chief mentioned that he anticipates rollovers of $16.3 billion by June 2025, surpassing half of Pakistan’s $26.2 billion total external financing needs.
Attribution: Reuters
Subediting: M. S. Salama
