Finance Minister Muhammad Aurangzeb on Wednesday said the federal government is making good progress with the International Monetary Fund (IMF) and hopes to get board approval for a new $7 billion loan program in September.
An agreement was reached between the government and the IMF on a 37-month loan program in July. The IMF said the program is subject to approval by its executive board and “timely confirmation of necessary financial assurances from Pakistan’s development and bilateral partners”.
“We are making good progress with the IMF for board approval in September,” Aurangzeb told Reuters.
The government is in talks with Saudi Arabia, the UAE, and China to meet the overall financing requirements under the IMF program, Aurangzeb said after his visit to China in July to refinance energy sector loans.
Rollovers or distributions of debt to Pakistan’s long-standing allies, in addition to financing from the IMF, have helped the country meet its external financing needs in the past.
The IMF did not immediately respond to a Reuters request for comment on the executive board meeting on Pakistan’s external financing needs and debt program.
During an analyst briefing after the State Bank’s decision to cut rates by 100 basis points in July, the central bank chief said he expected a rollover of $16.3bn in the fiscal year to June 2025, which would be the country’s is more than half of the $26.2bn external financing requirement.