IMF Board to Consider $7 Billion Bailout for Pakistan Today

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”. 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. The Finance Division, while giving an in-camera briefing to the National Assembly Standing Committee on Finance last week informed that the IMF has been informed about assurances from friendly countries to roll over existing loans. Sources said these assurances convinced the IMF to schedule a meeting to further discuss Pakistan’s program. Additionally, the IMF has been taken into confidence on reforms in Pakistan’s power sector. The committee was also informed that Pakistan’s financial requirements are more than the current IMF bailout package. It was further revealed that $7 billion would come from the IMF, while an additional $5 billion would need to be secured from commercial banks and other lenders.