Pakistan has been placed on the IMF Executive Board’s agenda for September 25, marking a crucial step towards securing the $7 billion Extended Fund Facility (EFF). Prime Minister Shehbaz Sharif praised the unwavering support of friendly nations in helping Islamabad reach this milestone.
The 37-month loan agreement, reached in July, hinges on the IMF board’s approval and Pakistan’s confirmation of $2 billion in external financing from bilateral and commercial lenders. Pakistan’s external financial commitments include $5 billion in cash deposits from Saudi Arabia, $4 billion from China, and $3 billion from the UAE, along with $4.5 billion in commercial loans.
IMF spokesperson Julie Kozack highlighted the necessity of financing assurances and welcomed Pakistan’s consistent policy measures, which have bolstered economic stability, growth, and international reserves. Meanwhile, Finance Minister Muhammad Aurangzeb expressed optimism, asserting that all matters with the IMF had been resolved amicably.
State Bank Governor Jameel Ahmad confirmed that Pakistan had secured more than $2 billion in external financing, overcoming the final hurdle for the loan program. He emphasized that no further obstacles remain for board approval.
Following substantial fiscal reforms, including raising the tax revenue target by 40% and increasing energy prices, Pakistan earned a credit rating upgrade from Moody’s and Fitch. Prime Minister Sharif expressed hope that the forthcoming IMF package would be the nation’s last, urging a future where Pakistan stands on its own financial footing.
