IMF Executive Board Excludes Pakistan From Latest Meeting Schedule
Approval for the $7 billion bailout program postponed to September as discussions continue
The Executive Board of the International Monetary Fund (IMF) has released its meeting schedule up to September 4, and Pakistan’s name is notably absent once again.
Despite this, the Finance Ministry remains hopeful about securing approval for the $7 billion bailout package from the IMF in September.
Sources indicate that the government is actively pursuing a rollover of $12 billion in debt from China, Saudi Arabia, and the United Arab Emirates (UAE).
In addition, Pakistan has reportedly requested an additional $1.2 billion loan from Saudi Arabia to bridge a $2 billion financing gap. Currently, Pakistan holds $5 billion in cash deposits from Saudi Arabia, $4 billion from China, and $3 billion from the UAE.
Furthermore, Pakistan is facing an additional $4.5 billion in commercial debt, which includes obligations to China.
On August 23, Federal Minister for Finance Muhammad Aurangzeb stated that the IMF Executive Board is expected to approve Pakistan’s new loan program in September. Speaking to the media in Islamabad, he mentioned that discussions with the IMF were ongoing every other day and that China, Saudi Arabia, and the United Arab Emirates had responded positively. He added that these friendly nations would work through their executive directors to assure the international lender.
IMF Holds Back Approval of Pakistan’s $7bn Loan Package, Extending Uncertainty
The minister also noted that Pakistan requires $2 billion in external financing for the current fiscal year and an additional $3 billion over the next 37 months.
This marks the third instance where the IMF Executive Board has left Pakistan out of its meeting schedule, despite earlier expectations that the global lender would approve the country’s $7 billion bailout program by the end of August.
According to sources, Pakistan’s name was not included in the latest IMF Executive Board meeting schedule, which covers the period through August 30.
The most recent schedule, issued on August 21, shows that the IMF board plans to review applications from three countries, including Vietnam, between August 28 and 30. Pakistan’s request for a new loan program has been deferred until next month, further extending the country’s wait for financial assistance.
Sources suggest that the primary reason for the delay is the untimely rollover of a $12 billion loan from friendly countries. The IMF has imposed strict conditions, requiring Pakistan to secure external financing assurances before the executive board meeting.
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