IMF Board
ISLAMABAD: The executive board of the IMF is holding a crucial meeting on Wednesday (July 12) in Washington to approve a $3 billion standby arrangement with Pakistan.
The IMF board is holding this meeting in the wake of the signing of a staff-level agreement between the IMF and Pakistan for the resumption of loans.
Meanwhile, the IMF has accepted the external financial plan submitted by the Pakistan government to unlock the IMF bailout program.
Last week, the federal government submitted a financing plan of $8 billion to the International Monetary Fund (IMF). The government submitted the plan ahead of the IMF board meeting on July 12.
Accordingly, China will provide financing up to $3.5 billion, underscoring China’s commitment to deepening strong bilateral relations in the economic, trade, and financial sectors.
China will rollover safe deposits of $2 billion, and reschedule $1.5bn of commercial banks. China’s support during the last few months when the country is in difficult economic circumstances shows China’s commitment to deepening the relations between both countries.
Meanwhile, Saudi Arabia and UAE will contribute $2 billion and $1 billion respectively. Additionally, the Asian Development Bank (ADB) and the World Bank will contribute $500 million each.
Furthermore, the government will obtain $3 billion through the IMF program, signed between the International Monetary Fund (IMF) and Pakistan on June 30.
IMF team meets Imran Khan, leaders of other political parties
In its efforts to garner support for the recently announced $3 billion bailout program, the International Monetary Fund (IMF) held meetings with leaders of major political parties, including Pakistan Tehreek-e-Insaf chairman Imran Khan.
Esther Perez Ruiz, the IMF’s resident representative, stated that these meetings aim to ensure support for the program’s key objectives. The meeting would also focus on the policies regarding the upcoming elections.
Pakistan is set to hold general elections by early November. The new bailout program, a nine-month stand-by arrangement, will be considered by the IMF’s board on July 12.
In a Twitter post, PTI leader Hammad Azhar revealed that the IMF has reached out to the party’s economic team to seek PTI’s support for the loan agreement and its broader objectives.
