The International Monetary Fund (IMF) board will convene on September 25 to discuss the $7 billion loan programme agreed with Pakistan in July, according to an IMF spokesperson, Julie Kozack, during a press briefing on Thursday.
The approval of the 37-month loan package is contingent on Pakistan securing “timely confirmation of necessary financing assurances” from its development and bilateral partners. These assurances were recently obtained, paving the way for the IMF’s executive board review.
Prime Minister Shehbaz Sharif mentioned on Thursday that “friendly” countries have played a crucial role in helping Pakistan meet the IMF’s conditions for the loan, but declined to provide further specifics. Reports suggest that Pakistan was working to arrange up to $2 billion, negotiating with commercial banks to bridge a financing gap.
Pakistan has historically depended on financial support from countries such as China, Saudi Arabia, and the UAE to bolster its economy and stave off default risks, which escalated last summer. The nation’s sovereign dollar bonds saw a positive response to the developments, with the 2031 maturity trading higher, indicating growing investor confidence.
The outcome of the IMF board meeting will be critical for Pakistan as it navigates its economic challenges.
