$7 bn loan for Pakistan: IMF meets today

WASHINGTON: Amid high expectations, the International Monetary Fund (IMF) Executive Board is all set to consider Pakistan’s 37-month Extended Fund Facility Arrangement (EFF) of about $7 billion on Wednesday (today).

According to the Fund’s Executive Board’s calendar available on its website, the Board would consider “Pakistan – 2024 Article IV Consultation and Request for an Extended Arrangement under the Extended Fund Facility”.

This new bailout program, spanning 37 months, marks Pakistan’s 24th IMF assistance package. With its approval, Pakistan will also be eligible to receive funds from other international organizations and countries.

Finance minister upbeat about IMF’s crucial meeting on Pakistan loan

The Pakistani authorities and the IMF team reached a staff-level agreement on a 37-month EFF in the amount equivalent to SDR 5,320 million (or about USD 7 billion) on July 12.

This agreement was subject to approval by the IMF’s Executive Board and the timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.

Officials revealed that Pakistan has met all prior conditions and there are high chances that the IMF Executive Board would approve the 37-month EFF of about $7 billion.

China, Saudi Arabia, the UAE, and Kuwait have also provided crucial support by deferring Pakistan’s loan payments for one year.