IMF keeps Pakistan waiting on $7 billion loan yet again

ISLAMABAD: Amid increasing uncertainty over when the International Monetary Fund (IMF) will grant final approval for Pakistan’s $7 billion loan, the international lender has once again released the agenda for its upcoming board meetings, scheduled until September 4, with Pakistan still absent from the list.

It is worth noting that the previous schedule, which covered meetings up until August 28, also did not include Pakistan, raising concerns about when the IMF will finally approve the much-needed loan.

The government is reportedly working to secure a rollover of $12 billion in loans from key allies, including China, Saudi Arabia, and the United Arab Emirates (UAE). Additionally, Pakistan has reportedly requested an extra $1.2 billion loan from Saudi Arabia to address a $2 billion financing gap.

Pakistan and the IMF reached a staff-level agreement over a month ago, on July 12, and the country has since been implementing various measures to meet the IMF’s conditions for loan approval. However, the loan remains subject to final approval by the IMF’s Executive Board.

Earlier, concerns were raised regarding the timing of the loan’s release and potential issues, but Finance Minister Muhammad Aurangzeb clarified that there are no problems and that Pakistan is expected to receive final approval in September.

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