Finance Ministry Updates IMF on Loan Rollovers

Pakistan-Finance Minister Muhammad Aurangzeb expressed confidence about the ongoing negotiations with the International Monetary Fund (IMF) concerning external financing.

Speaking informally with journalists on Thursday, the minister highlighted that discussions regarding the IMF loan program are nearing completion. “We are close to finalizing the talks with the IMF on external financing,” he stated.

Aurangzeb noted that the approval process for the IMF loan program is progressing well. While he couldn’t provide a specific date for the approval, he indicated that it is anticipated to be completed by the end of the month. “We are in the advanced stages of securing approval from the IMF Executive Board,” he added.

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The minister also discussed ongoing negotiations with Saudi Arabia concerning an oil loan facility that would allow for deferred payments. He mentioned that discussions are also underway to explore mutual investment opportunities in various projects with the Kingdom.

Alongside these talks with friendly nations, Aurangzeb confirmed that the government is actively engaging with commercial entities to secure additional financing options.

On Tuesday evening, virtual meetings were held between Finance Ministry officials and the IMF mission. These discussions focused on key issues related to external financing and revenue generation.

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During the discussions, Finance Ministry officials updated the IMF mission on the government’s efforts to secure external financing, including progress on loan rollovers and new financing pledges from friendly countries. It was disclosed that a timeline has been set for the IMF, with loan rollovers expected to be finalized by next week.

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

Additionally, the IMF has highlighted the importance of the Federal Board of Revenue (FBR) meeting its revenue targets for the current month. In response, the IMF has requested a detailed plan from the FBR to address the revenue shortfall and ensure that targets are achieved.

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