IMF Board to Discuss $7 Billion Bailout for Pakistan Today
The International Monetary Fund (IMF) Executive Board is expected to review Pakistan’s request for a $7 billion bailout today. This bailout is part of a 37-month Extended Fund Facility (EFF) arrangement.
According to the IMF’s official schedule, the Board will discuss Pakistan’s situation during its meeting today. This includes a report called the “2024 Article IV Consultation” and the request for the extended financial support.
On July 12, the Pakistani government and the IMF team agreed on the terms for this support, which amounts to around SDR 5,320 million, equivalent to about $7 billion.
This agreement for the $7 billion bailout still needs to be approved by the IMF’s Executive Board. It also requires confirmation of necessary financial support from Pakistan’s development and bilateral partners.
Officials have stated that Pakistan has met all the conditions set by the IMF, making it likely that the Executive Board will approve the 37-month Extended Fund Facility (EFF) soon.
Last week, the Finance Division briefed the National Assembly Standing Committee on Finance in a private meeting. They informed the committee that Pakistan has assured the IMF that friendly countries will help by rolling over existing loans. These assurances have led the IMF to schedule a meeting to discuss Pakistan’s program further. Additionally, the IMF has been updated on reforms happening in Pakistan’s power sector.
The committee was told that Pakistan’s financial needs are greater than the current $7 billion bailout package from the IMF. It was explained that while the IMF will provide $7 billion, Pakistan will also need to secure an extra $5 billion from commercial banks and other lenders to meet its financial requirements. This means that Pakistan will need to find additional funding beyond what the IMF is offering to cover its total needs.
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