IMF Board to Review $7 Billion Loan for Pakistan on September 25

The IMF will meet on September 25 to discuss a $7 billion Extended Fund Facility for Pakistan. The meeting comes after Pakistan secured $2 billion in external financing to bridge a funding gap. The country's recent economic measures, including a policy rate reduction and increased tax revenue, were critical for securing the package.

The International Monetary Fund (IMF) board is scheduled to meet on September 25 to deliberate on a $7 billion Extended Fund Facility (EFF) for financially struggling Pakistan.

The loan package, initially agreed upon on July 12, faced delays due to Pakistan's inability to secure external financing.

State Bank of Pakistan Chief Jamil Ahmad confirmed Pakistan has now obtained a $2 billion financing commitment, a key requirement for approving the 37-month EFF loan

IMF spokesperson Julie Kozack announced the board meeting date, emphasizing that financing assurances from development partners made it possible.

Kozack noted that consistent policy measures in Pakistan have helped stabilize the economy, highlighting growth resumption, inflation control, and increased international reserves.

The State Bank of Pakistan recently reduced the policy rate to 17.5%, following inflation reduction to single digits in August.

Pakistan met several IMF conditions, including a historic 40% increase in tax revenue, and received credit rating upgrades from Moody's and Fitch.

Finance Minister Muhammad Aurangzeb and Prime Minister Shehbaz Sharif expressed gratitude for the support through the negotiations.

(With inputs from agencies.)