Islamabad: The International Monetary Fund (IMF) has not scheduled Pakistan for discussion in its executive board meetings set for August. The final meeting of the month will take place on August 28, focusing on the sixth review of Guinea-Bissau.
Despite this, Pakistan’s Finance Minister, Muhammad Aurangzeb, remains optimistic that the IMF will approve the country’s bailout package this month. In July, Pakistan reached a staff-level agreement with the IMF for a $7 billion bailout after aligning its annual budget with the lender’s requirements.
The IMF acknowledged Pakistan’s efforts to meet the conditions of the Stand-by Arrangement (SBA) agreed upon in 2023 under the Shehbaz Sharif-led government. If Pakistan continues to fulfill its commitments, the $7 billion will be disbursed over three years. These commitments include expanding the tax base, privatizing state-owned enterprises, and securing additional loans from countries like China, Saudi Arabia, and the UAE.
The new 37-month Extended Fund Facility (EFF) builds on the economic progress made under the 2023 SBA. The program is designed to strengthen Pakistan’s economic stability and promote sustainable growth. Key goals include improving fiscal and monetary policies, enhancing the management of State-Owned Enterprises (SOEs), and increasing social support through the Benazir Income Support Program (BISP).
The IMF stressed the importance of ongoing support from Pakistan’s development and bilateral partners to ensure the program’s success.