The International Monetary Fund (IMF) announced that its executive board will convene on September 25 to discuss Pakistan’s $7 billion Extended Fund Facility (EFF).
This development follows Pakistan’s efforts to meet IMF conditions, including a 40% increase in tax revenue and higher energy prices. Pakistan had initially hoped to finalize the deal in August after the IMF approved the 37-month program in July.
IMF spokesperson Julie Kozack confirmed the board’s meeting date and praised Pakistan’s progress.
“We are pleased to announce that the board meeting is scheduled for September 25,” she said, noting that Pakistan had secured the necessary financing assurances from development partners.
Kozack highlighted that consistent policy measures have stabilized Pakistan’s economy, leading to resumed growth, reduced inflation, and increased international reserves. When asked about the financing status, she affirmed, “Yes.”
Earlier, State Bank of Pakistan (SBP) Governor Jameel Ahmad reported that over $2 billion in external financing had been secured from sources other than the IMF, clearing the “final hurdle” for the loan. He made these comments during an analyst briefing following the SBP’s decision to cut the policy rate.
In response to the IMF’s update, Prime Minister Shehbaz Sharif expressed satisfaction with the bailout negotiations and praised the support from friendly nations. He emphasized the need for Pakistan to reduce its debt reliance and hoped the IMF package would be the country’s last.
Sharif also lauded the State Bank of Pakistan’s decision to cut the policy rate by 2%, calling it a positive step for investor confidence and expressing hope for further reductions to align with inflation rates.
Pakistan finally secures 7 Billion IMF bailout package after major economic reforms
