ISLAMABAD – The International Monetary Fund (IMF) has formally added Pakistan’s $7 billion loan deal to its agenda for the Executive Board meeting scheduled for September 25.
The global lender has officially announced the calendar for the IMF Executive Board meeting, confirming that the South Asian country’s bailout package will come under review on Sept 25.
The loan request from Pakistan falls under the Extended Fund Facility, and the board would consider the approval of the package during the upcoming meeting.
The development comes nearly a week after Prime Minister Shehbaz Sharif revealed that friendly countries have helped Pakistan meet the requirements laid forth by the IMF for loan deal’s approval.
In July, International Monetary Fund and Pakistan have reached a staff-level agreement on a 37-month Extended Fund Facility Arrangement (EFF) of about $7 billion. This agreement is subject to approval by the IMF’s Executive Board.
According to the international lender, the new program aims to support Pakistani authorities’ efforts to cement macroeconomic stability and create conditions for a stronger, more inclusive, and resilient growth. This includes steps to strengthen fiscal and monetary policy and reforms to broaden the tax base, improve State Owned Enterprises’ (SOE) management, strengthen competition, secure a level playing field for investment, enhance human capital, and scale up social protection through increased generosity and coverage in the Benazir Income Support Program (BISP).
The IMF further emphasized that continued strong financial support from Pakistan’s development and bilateral partners would be critical for the program to achieve its objectives.