ISLAMABAD: The International Monetary Fund (IMF) has released its meeting schedule up to September 4, with Pakistan’s request for a $7 billion bailout package once again absent from the list. Despite this delay, the Finance Ministry remains hopeful that the loan will be approved in September.
The government is currently focused on securing a rollover of $12 billion in debt from China, Saudi Arabia, and the United Arab Emirates (UAE). In addition, Pakistan has requested an additional $1.2 billion loan from Saudi Arabia to address a $2 billion financing gap. Currently, Pakistan holds $5 billion in cash deposits from Saudi Arabia, $4 billion from China, and $3 billion from the UAE. The country also faces a commercial debt burden of $4.5 billion, including obligations to China.
On August 23, Federal Minister for Finance Muhammad Aurangzeb expressed optimism that the IMF Executive Board would approve the new loan program in September. Speaking to the media in Islamabad, he noted that discussions with the IMF are ongoing and that China, Saudi Arabia, and the UAE have responded positively. He mentioned that these countries would coordinate with the IMF through their executive directors to facilitate the loan process.
Pakistan requires $2 billion in external financing for the current fiscal year and an additional $3 billion over the next 37 months. This marks the third time that the IMF Executive Board has excluded Pakistan from its meeting schedule, which initially raised expectations for approval by the end of August.
Sources indicate that the delay is primarily due to the government’s failure to secure timely assurances for the $12 billion debt rollover from friendly countries. The IMF had set strict conditions requiring Pakistan to secure these assurances before the Executive Board could consider the loan request.
The IMF’s latest schedule, released on August 21, shows that the board will review applications from three countries, including Vietnam, between August 28 and 30. Pakistan’s request for a new loan program has been postponed until next month, further extending the country’s wait for crucial financial assistance.
