Finance Minister Muhammad Aurangzeb announced on Wednesday that Pakistan is making significant progress with the International Monetary Fund (IMF) and anticipates securing the Executive Board’s approval for the $7-billion Extended Fund Facility (EFF) in September.
“We are making good progress with IMF to secure Board approval during September,” Aurangzeb stated in a message to Business Recorder.
This update comes after initial expectations that the IMF Executive Board would consider Pakistan’s agenda in August. However, the absence of Pakistan’s name from the Board’s August schedule has sparked concerns about the timeline for the loan’s disbursement.
The delay has raised fears that Pakistan may still need to fulfill certain requirements, including securing additional external financing. The IMF has not yet commented on the matter.
Pakistan and the IMF reached a staff-level agreement on July 12 for a 37-month loan program, but final approval from the IMF Executive Board hinges on Pakistan obtaining “timely confirmation of necessary financing assurances from development and bilateral partners.” This includes commitments from Saudi Arabia, the United Arab Emirates, and China.
