ISLAMABAD: Finance Minister Muhammad Aurangzeb expressed strong optimism on Tuesday regarding the International Monetary Fund (IMF)’s upcoming review of Pakistan’s 37-month, $7 billion Extended Fund Facility (EFF), set for tomorrow.
The IMF has announced that its board will convene on September 25 to assess the EFF for Pakistan, amidst concerns that fund disbursement may hinge on delays in debt rollover confirmations from China, Saudi Arabia, and the UAE. There are also worries about the government’s inability to secure new funds to address an external financing gap of $2 billion for the current fiscal year.
Aurangzeb stated in an interview with Geo News, “We are very hopeful that the board will approve the seven billion dollar program, under which we are committed to implementing structural reforms.”
He noted the decline in KIBOR and policy rates, emphasizing that the government aims to communicate that it is not “desperate to borrow.” He highlighted that any domestic borrowing would be done on the government’s terms, citing instances where they declined bids for T-Bills and Pakistan Investment Bonds (PIBs).
“The success of our previous nine-month Stand-By Arrangement (SBA) has paved the way for these discussions,” he added.
Aurangzeb expressed gratitude to China for its ongoing support throughout the Fund program, noting its long-standing partnership with Pakistan. He reiterated the government’s commitment to advancing its reform agenda across taxation, energy, and the privatization of state-owned enterprises.
In July, Pakistan and the IMF finalized a three-year, $7 billion aid package aimed at fostering macroeconomic stability and promoting inclusive, resilient growth. This follows the successful completion of a previous $3 billion loan program in April, which contributed to recent credit rating upgrades from both Moody’s and Fitch Ratings.
