The International Monetary Fund (IMF) has scheduled a board meeting for September 25 to review Pakistan’s request for a $7 billion Extended Fund Facility (EFF), confirmed by IMF spokesperson Julie Kozack on Thursday.
Pakistan was poised to finalize this agreement in August following a staff-level agreement in July. To comply with IMF requirements, the country significantly increased its tax revenue target by 40% and escalated energy prices.
“We are very happy to confirm the upcoming board meeting on September 25,” Kozack stated during today’s press briefing. She credited the planned EFF to Pakistan, securing necessary financial assurances from development partners, building on the success of a nine-month standby arrangement in 2023. Kozack highlighted Pakistan’s stabilized economy, which was marked by resumed growth, substantial disinflation, and bolstered international reserves.
Responding to inquiries about these financial assurances, Kozack affirmed, “Yes.”
Future Outlook
Finance Minister Muhammad Aurangzeb reacted positively to this development. “By the grace of God, all matters with the IMF have been settled amicably,” he remarked in a finance ministry release. He thanks Prime Minister Shehbaz Sharif’s team, the IMF negotiators, and related institutions.
He also noted that a reduced policy rate would likely boost investment and business activities, creating more job opportunities and easing inflation, which has been progressively declining.
State Bank of Pakistan (SBP) Governor Jameel Ahmad stated that the country had arranged over $2 billion in external financing from sources other than the IMF, which he described as the “final hurdle” to securing the loan, as reported by Bloomberg today.
“The government has arranged all necessary assurances and external financing, and I foresee no further obstacles in presenting our case to the board,” Ahmad mentioned at an analyst briefing following a policy rate cut on Thursday.
Prime Minister Sharif, speaking at a federal cabinet meeting earlier in the day, described the IMF negotiations as “progressing positively,”. He thanked allied nations for their robust support and emphasized the importance of reducing Pakistan’s reliance on loans to foster economic independence.
