The final approval of Pakistan’s $7 billion bailout package from the International Monetary Fund (IMF) remains uncertain, as the IMF Executive Board’s schedule until August 28 has been released without including Pakistan on the agenda.
This omission has raised concerns about the timeline for the loan’s disbursement. However, sources indicate that the IMF Executive Board has the discretion to add agenda items outside the official schedule, leaving some room for optimism.
Pakistan and the IMF signed a staff-level agreement on July 12 and Finance Minister Muhammad Aurangzeb anticicpated earlier this month that the board could approve the loan program by the end of August. Typically, after a staff-level agreement, the Executive Board meets within four to six weeks to finalize the agreement.
The new IMF loan program, which is expected to span 37 months, aims to provide crucial financial support to Pakistan, stabilizing the economy, boosting foreign reserves, and addressing ongoing fiscal challenges. However, until the Executive Board formally approves the agreement, Pakistan’s financial outlook remains uncertain.
