Aurangzeb Plays Down Fears Over IMF Board Approval of $7 Billion Loan Program

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb Friday played down fears over the Board approval of the $7 billion International Monetary Fund (IMF) program. Speaking to reporters in Islamabad, the finance minister said that such fears were expressed by certain quarters in the past as well but said that Pakistan is in constant touch with the IMF and the Board would approve the loan program next month (September). “Like in the past, this time as well, the IMF Executive Board will approve the program, hopefully in September. We are in discussions with IMF every other day,”, the minister said. Back in July, IMF staff and the Pakistani authorities reached a staff-level agreement on a 37-month Extended Fund Facility Arrangement (EFF) of about $7 billion. The agreement is subject to approval by the IMF’s Executive Board. Earlier, the minister had stated that the IMF Executive Board would approve EFF for Pakistan by the end of August 2024, however, the global lender removed Pakistan from its August 30th board meeting agenda. The minister also confirmed the news that Pakistan has approached Middle Eastern banks to secure funds and said that positive talks have been held with commercial banks over securing funds. He said that international credit rating agencies have improved Pakistan’s rating in recent months due to which talks with commercial banks have been positive. The minister said that the government is currently involved in talks with Dubai Islamic Bank and Mashreq Bank to acquire financing. He also highlighted that last week positive talks were also held with the Saudi finance minister. He added that Pakistan has received a positive response in its efforts to secure financing from China, Saudi Arabia, and the United Arab Emirates. He pointed out that Pakistan needs external financing of $3 billion over the course of the 37-month IMF program, $2 billion of which is required during the current fiscal year.