Julie Kozik, Director of Communications at the International Monetary Fund (IMF), has stated that the IMF Executive Board meeting is scheduled for September 25, during which approval for a loan program for Pakistan is expected.
According to IMF spokesperson Julie Kozik, a staff-level agreement between Pakistan and the IMF was reached in July. Pakistan successfully completed a 9-month Standby Arrangement last year.
It is noted that Pakistan had requested a $7 billion loan from the IMF.
In a scheduled press briefing, IMF spokesperson Julie Kozik said, "The Board meeting is set for September 25 and is taking place after Pakistan has secured necessary financial assurances from its development partners."
The IMF states that Pakistan is complying with the conditions of a 37-month loan program.
On Thursday, Prime Minister Shehbaz Sharif stated that Pakistan's friendly and brotherly countries have once again fully supported us, akin to the support between brothers and friends. They have once again stood by Pakistan, repeating history.
The Prime Minister added that we have made every effort concerning the IMF, and discussions for the next program are progressing well. Once the program is finalized, we will take steps to increase growth.
On the other hand, the State Bank of Pakistan has stated that the government has obtained all the required financial assurances for the IMF program, and there are no further obstacles to securing the IMF program.
The State Bank also mentioned that Pakistan will present its case at the IMF meeting in September 2024. Pakistan is required to make $26.20 billion in payments during the current fiscal year, with $16.3 billion of these payments rolling over.
According to the State Bank, $14.1 billion will be due by March, with $8.3 billion rolling over by March, and the remaining $5.8 billion will be paid monthly at a rate of $800 million to $1 billion.
The State Bank indicated that $4 billion has already been settled from July to September, with $1.7 billion paid and $2.3 billion rolled over during this period.
Regarding the IMF agreement, Finance Minister Muhammad Aurangzeb stated, "Alhamdulillah, all matters with the IMF have been smoothly resolved. We are grateful to the Prime Minister's team, the IMF negotiating team, and the relevant institutions who played a crucial role in the final stages."
The Finance Minister added that these matters will be finalized in the IMF Board meeting this month. Following economic stabilization, the country is moving towards growth. The reduction in the policy rate will boost investment and business activities, leading to increased job opportunities. The continuous trend of decreasing inflation is starting to provide relief to the common people.
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