Federal Minister for Finance, Muhammad Aurangzeb, is optimistic about reaching an agreement with the International Monetary Fund (IMF) regarding the framework of a new loan program in the upcoming month.
During an interview with Reuters in Washington, he expressed Pakistan's intention to secure a substantial and extensive loan program from the IMF. He anticipates that the outline of this new program will be finalized in May, paving the way for additional financial assistance as part of the plan.
Highlighting Pakistan’s efforts to enhance its international rating in the next fiscal year, the minister revealed ongoing discussions with international rating agencies to facilitate the country’s return to the international debt market.
Despite the significant debt repayment obligations, estimated at $25 billion annually, Mr Aurangzeb reassured that most of the debt, including that owed to China, is being successfully rolled over.
Given this context, he emphasized that Pakistan does not foresee any difficulties in meeting its loan repayment obligations for the current year or the next.
IMF Executive Board meeting
On the other hand, the schedule for the IMF Executive Board meetings until April 29 has been released, revealing that the economic review of Pakistan is currently not on the agenda. Despite this, the staff-level agreement between Pakistan and the IMF was successfully finalized on March 20, 2024.
Upon approval from the IMF Executive Board, Pakistan is set to receive the final tranche of $1.1 billion, marking the conclusion of the standby arrangement totaling $3 billion. Despite the absence of Pakistan's economic review in the upcoming board meetings, the IMF has decided to convene a special session at the end of April to address the country's issues.
The completion of the staff-level agreement signifies a significant milestone in Pakistan's economic cooperation with the IMF, paving the way for the disbursement of the final installment and the conclusion of the standby arrangement.
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