IMF Executive Board delays Pakistan’s $7 billion bailout approval

WEB DESK: The final approval of Pakistan’s eagerly awaited $7 billion bailout package from the International Monetary Fund (IMF) remains uncertain, as the IMF Executive Board’s schedule, running until August 28, has been released without Pakistan’s name on the agenda.

This omission has raised concerns about the timing of the loan’s disbursement. However, there is still hope, as sources suggest that the Executive Board has the flexibility to include additional items beyond the published schedule.

This follows the staff-level agreement between Pakistan and the IMF, signed on July 12.

The finance minister has hinted that the board meeting could take place at the end of the month, potentially offering some much-needed relief to Pakistan’s struggling economy. Typically, the Executive Board meets within four to six weeks after a staff-level agreement to finalize the deal.

The new IMF loan programme, spanning 37 months, is anticipated to provide crucial financial support to Pakistan, stabilising the economy, bolstering foreign reserves, and addressing ongoing fiscal challenges. However, until the Executive Board grants formal approval, Pakistan’s financial situation remains uncertain.

IMF’s Mission Chief to Pakistan, Nathan Porter, stated that the staff-level agreement is a comprehensive programme endorsed by both federal and provincial governments, which could be supported by a 37-month Extended Fund Facility (EFF) amounting to approximately $7 billion.

The agreement, however, is contingent upon the IMF Executive Board’s approval and the timely confirmation of necessary financial assurances from Pakistan’s development and bilateral partners.

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