Islamabad-(Mudassar Iqbal)_The International Monetary Fund (IMF) has scheduled a meeting of its Executive Board for September 25 to discuss the approval of a $7 billion Extended Fund Facility (EFF) agreement with Pakistan. Prime Minister Shehbaz Sharif has expressed gratitude to friendly nations for their support in securing the bailout package.
The 37-month EFF program was agreed upon in July, subject to approval from the IMF’s Executive Board and obtaining necessary financing assurances from Pakistan’s development and bilateral partners. Islamabad must secure external financing of $2 billion from bilateral and commercial lenders within the ongoing week.
Pakistan owes $5 billion to Saudi Arabia in cash deposits, with additional deposits of $4 billion from China and $3 billion from the UAE. These amounts are separate from an additional $4.5 billion in commercial loans, including those from China.
Top official sources confirmed that Pakistan would dispatch a signed Letter of Intent (LoI) to the IMF’s Executive Board, requesting approval of $7 billion under the 37-month EFF with a written commitment to comply with all agreed conditions of the Fund program.
Prime Minister Shehbaz Sharif termed the progress with the IMF as “good” and praised the support of friendly countries. He emphasized the need for Pakistan to stand on its own feet and reduce its reliance on debts. The premier hoped that the forthcoming IMF package would be the country’s last.
IMF Requires Pakistan to Phase Out Price Controls on Wheat, Sugarcane, and Cotton
The government is making efforts to secure the IMF bailout package, with “good progress” in talks with the global lender. The State Bank of Pakistan’s decision to slash the policy rate by 2% was lauded by the premier, who hoped for further reductions to single-digit levels, mirroring inflation rates.
Pakistan has relied heavily on IMF programs for years, often nearing sovereign default and requiring financing from countries like the UAE and Saudi Arabia to meet external financing targets set by the IMF.
