ISLAMABAD: The International Monetary Fund (IMF) on Thursday confirmed that its board will meet on September 25 to discuss Pakistan’s $7 billion Extended Fund Facility (EFF) arrangement.
Pakistan had anticipated finalizing the deal with the IMF in August following the approval of a 37-month program in July. The country had also increased its tax revenue target by a record 40 percent and raised energy prices to meet the IMF’s requirements.
Furthermore, Pakistan completed its previous $3 billion loan program in April and recently received credit rating upgrades from both Moody’s and Fitch Ratings.
IMF spokesperson Julie Kozack, addressing a press conference, said that the Fund had reached a staff-level agreement with Pakistan on the EFF in July. “We are pleased to confirm that the board meeting is scheduled for September 25,” she said. “This follows Pakistan obtaining necessary financing assurances from its development partners. The new EFF arrangement builds on the successful implementation of the 2023 nine-month standby arrangement.”
Kozack said that consistent policymaking has contributed to economic stability in Pakistan, including resumed growth, significant disinflation, and a notable increase in international reserves. When asked if Pakistan had received the necessary assurances, she confirmed, “Yes.”
Finance Minister Muhammad Aurangzeb expressed gratitude to all involved in the negotiations. In a statement, he said, “By the grace of God, all matters with the IMF have been settled amicably.”
Aurangzeb thanked Prime Minister Shehbaz Sharif’s team, the IMF negotiators, and relevant institutions. “These matters will be finalized at the IMF board meeting this month,” he added. “The economy is moving towards growth after stabilization.”
Aurangzeb also noted that the reduction in the policy rate would boost investment and business activities, leading to increased employment opportunities and relief for the public from declining inflation.
State Bank of Pakistan (SBP) Governor Jameel Ahmad had earlier reported that the country secured over $2 billion in financing from sources other than the IMF, describing this external financing as the “final hurdle” for the loan. Ahmad, speaking at an analyst briefing, stated, “All assurances and external financing have been arranged by the government, and I do not foresee any further obstacles.”
Prime Minister Shehbaz Sharif, addressing a federal cabinet meeting, remarked that negotiations with the IMF were “progressing positively.”
He also expressed gratitude to friendly countries for their support and emphasized the goal of reducing dependence on loans to strengthen the country’s economic independence, according to Radio Pakistan.
