IMF to review Pakistan’s $7bn loan request this month

International Monetary Fund (IMF) spokesperson Julie Kozack said on Thursday that the Executive Board will discuss Pakistan’s $7 billion Extended Fund Facility (EFF) on September 25.

This happens as a result of Pakistan’s attempts to comply with International Monetary Fund  requirements, which include raising energy costs and tax income by 40%. After the 37-month program was authorized by the IMF in July, Pakistan had originally anticipated to close the transaction in August.

Julie Kozack, an IMF spokesman, verified the date of the board meeting and complimented Pakistan on its advancements.

“We are happy to announce that September 25th is the date of the board meeting,” she stated, adding that Pakistan has obtained the required assurances from development partners on finance.

Kozack emphasized that steady policy actions have brought Pakistan’s economy back to stability, resulting in a growth spurt, lower inflation, and higher foreign reserves. “Yes,” she responded when questioned about the monetary situation.

Prior to this, Governor Jameel Ahmad of the State Bank of Pakistan (SBP) said that the “final hurdle” for the loan had been cleared when more than $2 billion in outside funding was obtained from sources other than the IMF. Following the SBP’s decision to lower the policy rate, he said these things at an analyst briefing.

PM Shehbaz Sharif responded to the IMF’s report by saying he was happy with the bailout talks and appreciated the friendly countries’ cooperation. He hoped that Pakistan’s IMF package will be the final one and underlined the necessity for the nation to lessen its dependency on debt.

The State Bank of Pakistan’s move to lower the policy rate by 2% was also welcomed by Sharif, who expressed optimism that other reductions in line with inflation rates would follow.