Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has dismissed concerns about the International Monetary Fund (IMF) Board’s approval of the $7 billion loan program. He assured that Pakistan is in constant communication with the IMF and expects the program to be approved in September.
In July, Pakistan reached a staff-level agreement with the IMF for a 37-month Extended Fund Facility Arrangement (EFF). While the minister initially anticipated Board approval by the end of August, the IMF removed Pakistan from its August 30th board meeting agenda.
To supplement its foreign exchange reserves, Pakistan has been actively seeking financing from Middle Eastern banks. The minister confirmed that positive talks have been held with commercial banks, facilitated by improved credit ratings from international agencies.
Specific discussions have taken place with Dubai Islamic Bank and Mashreq Bank, and positive meetings were also held with the Saudi finance minister last week. Pakistan is optimistic about securing financing from China, Saudi Arabia, and the United Arab Emirates.
The minister highlighted that Pakistan requires $3 billion in external financing over the 37-month IMF program, with $2 billion needed during the current fiscal year.