Pakistan hopes for IMF approval for USD 7 Bn loan next month

Pakistan’s Finance Minister Muhammad Aurangzeb announced on Wednesday that the federal government is making significant progress in its discussions with the International Monetary Fund (IMF) and anticipates securing board approval in September for a new $7 billion loan programme.

The 37-month loan agreement between Pakistan and the IMF was reached in July, with the IMF stating that the programme’s implementation would be contingent on approval from its executive board, as well as securing “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.” In the past, Pakistan has relied on rollovers or disbursements from long-time allies, in addition to IMF financing, to meet its external financing obligations.

According to the IMF’s website, as of June 30, Pakistan had outstanding Purchases and Loans amounting to 6,369.17 million in Special Drawing Rights (SDR). The SDR is an international reserve asset. In its July 2024 World Economic Outlook, the IMF projected Pakistan’s real GDP to grow by 2 per cent in 2024. (WWW. Dawn News)

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