IMF Holds Back Approval of Pakistan’s $7bn Loan Package, Extending Uncertainty
Pakistan's economic future remains uncertain as the IMF delays the approval of the $7 billion loan package.

The much-anticipated approval of Pakistan’s $7 billion bailout package from the International Monetary Fund (IMF) has been postponed once again.
Sources indicate that Pakistan’s request has not been included in the latest schedule for the IMF Executive Board meeting, which runs through August 30.
The board will consider applications from three countries, including Vietnam, between August 28 and 30. However, Pakistan’s appeal for a new loan program has been pushed to next month, extending the country’s wait for crucial financial support.
Punjab Offers Interest-Free Loans for Home Construction
According to sources, the primary reason for the delay in the IMF bailout approval is the lack of timely rollover of a $12 billion loan from allied countries. The IMF has imposed strict conditions, requiring Pakistan to secure commitments for external financing before the Executive Board convenes.
Currently, Pakistan holds deposits totaling $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE.
In an effort to meet the IMF’s requirements, the Pakistani government has been working to secure a rollover of the $12 billion deposit and refinance commercial loans. This delay in approving the bailout package comes at a crucial moment, as Pakistan faces external payment obligations totaling $26.4 billion this year, including commitments related to commercial debt.
Pakistan Seeks Rescheduling of $15 Billion Chinese Loan
On August 19, the IMF Executive Board released its schedule through August 28, excluding Pakistan’s request for a $7 billion loan, raising concerns about the timing of disbursement. However, sources note that the Board can still add agenda items, keeping hopes alive. This follows the staff-level agreement signed on July 12. Typically, the Executive Board finalizes such agreements within four to six weeks. The new 37-month IMF loan program aims to provide crucial financial support to Pakistan, stabilizing the economy and bolstering foreign reserves.
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