ISLAMABAD – All eyes are on International Monetary Fund (IMF) as lenders’ Executive Board is set to officially approve a $7 billion Extended Fund Facility (EFF) for Pakistan.
Islamabad is confident in securing the funds and has taken stern measures for it, including getting funding nods from friendly nations. The prime minister, finance minister, and cabinet members are hopeful about today’s review. The delay comes due to debt rollover confirmations from China, Saudi, and the UAE.
The ruling alliance governments took measures for structural reforms and highlighted recent decline in KIBOR and policy rates, stating that any borrowing would be done on the government’s terms.
Two months back, Islamabad secured a three-year EFF agreement with the IMF aimed at achieving macroeconomic stability and inclusive growth. The country also completed a prior $3 billion loan program in April and received credit rating upgrades from Moody’s and Fitch Ratings last month.
In recent weeks, IMF spokesperson Julie Kozack announced approval during a presser, emphasising the importance of this funding for Pakistan, which has been grappling with rising inflation and decreasing foreign reserves. This loan package has been under discussion since May, with a staff-level agreement reached in July.
Funding from IMF will also help government to unlock additional financial support from other international partners, providing much-needed relief for $350billion economy. Finance Minister Muhammad Aurangzeb confirmed that all matters with the IMF have been settled, expressing gratitude to the negotiating teams involved.
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