IMF staff-level agreement finalised, next loan tranche to follow: Aurangzeb

ISLAMABAD: Pakistan has reached a staff-level agreement with the International Monetary Fund and expects approval from the lender’s executive board soon, after which the next loan tranche will be released, Finance Minister Muhammad Aurangzeb said on Saturday.

Speaking during a meeting with representatives of S&P Global Ratings, Aurangzeb said Pakistan’s improving economic indicators and reform momentum were helping restore confidence in global financial markets.

He said the staff-level agreement with the International Monetary Fund had been finalised and would be presented to the IMF’s executive board for approval in the coming weeks.

Aurangzeb added that Pakistan had successfully repaid a $1.4 billion Eurobond earlier this month, underscoring the country’s ability to meet its external obligations.

The finance minister also referred to financial support from Saudi Arabia, including an additional $3 billion assistance package and the extension of a $5 billion deposit facility until 2028, which he said would further strengthen Pakistan’s external position.

He outlined the government’s medium-term fiscal strategy, saying that ongoing reforms and stabilising macroeconomic indicators provided a strong foundation for an improvement in Pakistan’s sovereign credit rating.