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 "IMF, International Monetary Fund")
Finance Minister Muhammad Aurangzeb in a statement expressed gratitude to those involved in the negotiations. (Photo: Bloomberg)
The International Monetary Fund on Thursday said that its board will meet on September 25 to discuss the $7 billion Extended Fund Facility (EFF) to cash-strapped Pakistan.
The loan package was agreed on July 12 when the two sides inked a staff level agreement but its formal approval was delayed due to failure of Pakistan to bridge external financing gap.
However, chief of the State Bank of Pakistan, Jamil Ahmad, said the country had secured a commitment of $2 billion external financing, which had been a hurdle in the key Fund’s meeting to endorse the 37-month EFF loan.
Addressing a press briefing, IMF’s spokesperson Julie Kozack said the Fund had reached a staff-level agreement with Pakistan in July. We are very happy that we can say now that the board meeting is scheduled to take place on September 25, she said.
This is following Pakistan obtaining the necessary financing assurances from its development partners. The new EFF arrangement…follows the successful implementation of the 2023 nine-month standby arrangement, Kozack said.
She said that consistent policy making has supported economic stability in Pakistan, most notably a resumption of growth, significant disinflation, and a significant increase in the country’s international reserves.
The development came after the State Bank of Pakistan reduced policy rate by 2 per cent to 17.5 per cent after inflation was pulled back to single digits in August.
The country already met several conditions of the IMF, including raising its tax revenue target by a record 40 per cent. Its credit rating was also upgraded by Moody’s and Fitch.
Finance Minister Muhammad Aurangzeb in a statement expressed gratitude to those involved in the negotiations.
He expressed gratitude to Prime Minister Shehbaz Sharif’s team, the IMF negotiators, and the relevant institutions.
(Pakistan’s) economy is moving towards growth after stabilisation, , Aurangzeb said.
Meanwhile, addressing a cabinet meeting, Prime Minister Shehbaz Sharif said that negotiations with the IMF were progressing positively, Radio Pakistan reported.
The prime minister also thanked friendly countries for overwhelmingly supporting Pakistan and stressed the need for Pakistan to get rid of the loans.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 13 2024 | 7:09 AM IST
