Finance Minister Muhammad Aurangzeb announced on Wednesday that the federal government is on track with the International Monetary Fund (IMF) and anticipates board approval in September for a new $7 billion loan programme. The agreement for the 37-month loan programme was reached in July, pending approval from the IMF’s executive board and confirmation of financing assurances from Pakistan’s partners.
The government is engaging in discussions with Saudi Arabia, the United Arab Emirates, and China to fulfill the financing needs under the IMF programme. Rollovers and disbursements from Pakistan’s allies, along with IMF funding, have previously aided in meeting the country’s external financing requirements.
Following the State Bank’s rate cut in July, the central bank chief predicted rollovers of $16.3 billion in the fiscal year ending June 2025, surpassing half of the $26.2 billion external financing demand. Further details on Pakistan’s external financing needs and the upcoming executive board meeting with the IMF are yet to be disclosed.