The International Monetary Fund (IMF) confirmed on Thursday that its executive board will meet on September 25 to discuss Pakistan’s $7 billion Extended Fund Facility (EFF).
This follows Pakistan’s efforts to meet the lender’s conditions, including raising tax revenue by 40% and increasing energy prices. The country initially expected to secure the deal in August after the IMF approved the 37-month programme in July.
During a press briefing, IMF spokesperson Julie Kozack confirmed the board’s upcoming meeting and praised Pakistan’s progress. “We are happy to announce that the board meeting is scheduled for September 25,” she said, adding that Pakistan had obtained the required financing assurances from development partners.
Kozack said that consistent policy measures have helped stabilize Pakistan’s economy, leading to resumed growth, disinflation, and an increase in international reserves. When asked if Pakistan had secured the necessary financing, she confirmed, “Yes.”
Earlier, State Bank of Pakistan (SBP) Governor Jameel Ahmad stated that over $2 billion in external financing had been arranged from lenders other than the IMF, clearing the “final hurdle” for the loan. He made these remarks during an analyst briefing after the SBP’s decision to cut the policy rate.
Prime Minister Shehbaz Sharif also spoke about the progress of IMF negotiations during a federal cabinet meeting, thanking friendly nations for their support and expressing a desire to reduce the country’s reliance on loans.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb said that all matters related to the agreement with the IMF have been resolved successfully.
The minister expressed gratitude to Prime Minister Shehbaz Sharif’s team, the IMF negotiation team, and relevant institutions for their key roles during the final stage. He said that the agreement would be finalised at the IMF Board meeting this month, adding the country’s economy was now moving towards growth after achieving stability.
Aurangzeb expressed his hope that a reduction in the policy rate would also help increase investment and business activities in the country, which would lead to the creation of new job opportunities.
