KARACHI – International Monetary Fund (IMF) has not added Pakistan to agenda for its Executive Board meetings until September 18.
As per IMF’s updated schedule, the meetings on September 9, 13, and 18 will not cover Pakistan’s proposed 37-month Extended Fund Facility (EFF) worth approximately $7 billion.
Islamabad successfully clinched $3 billion Standby Arrangement (SBA) with the IMF, which helped improve its foreign exchange reserves and ease external account pressures. Following this, on July 12, Pakistan and the IMF reached a staff-level agreement on a new $7 billion EFF. However, this agreement still requires approval from the IMF’s Executive Board and confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.
Sharif-led government is working to secure rollover of $12 billion in loans from key allies, including China, Saudi Arabia, and the UAE, and has also requested an additional $1.2 billion from Saudi Arabia to cover a $2 billion financing gap.
Finance Minister Muhammad Aurangzeb has indicated that the IMF Executive Board is expected to approve the program on time, as Pakistan is close to finalizing its financing assurances. Pakistan’s foreign exchange reserves have significantly improved, currently at $9.44 billion compared to $3.54 billion in mid-June 2023.
Despite these improvements, the IMF program remains crucial for Pakistan’s economic stability, as the country continues to face challenges in advancing reforms without IMF support.
