The International Monetary Fund (IMF) board is set to convene on September 25 to review the $7 billion loan agreement reached with Pakistan in July, according to IMF spokesperson Julie Kozack, who made the announcement during a press briefing on Thursday.
“The board meeting is scheduled for September 25, following Pakistan’s receipt of necessary financing assurances from its development partners,” Kozack said.
In July, Pakistan and the IMF agreed on a 37-month loan program, contingent on approval by the IMF executive board and confirmation of financing assurances from Pakistan’s development and bilateral partners. Pakistan has also sought loans from commercial banks, foreign creditors, and allied nations to stabilize its economy.
On Thursday, Prime Minister Shehbaz Sharif acknowledged that Pakistan had received support from “friendly” nations to fulfill the IMF’s bailout conditions. However, he declined to provide further details on the assistance. Pakistani officials had previously mentioned efforts to raise up to $2 billion to cover a financing shortfall, with talks underway with commercial banks.
For years, Pakistan has relied on financial aid from China, Saudi Arabia, and the United Arab Emirates to meet external financing needs and avert default, a crisis it nearly faced last summer. Last month, Finance Minister Muhammad Aurangzeb announced that these three countries had agreed to roll over Pakistan’s debt for another year.
On Thursday afternoon, Pakistan’s sovereign dollar bonds saw gains, with the 2031 bond trading at 79.93 cents on the dollar, up by 1 cent, according to Tradeweb data.
Additionally, the State Bank of Pakistan reported a $30 million increase in its foreign exchange reserves, bringing the total to $9.47 billion as of the week ending September 6.
Earlier this week, Pakistan’s finance ministry informed the National Assembly that the country secured $57.27 billion in external loans over the past five years, separate from the IMF program. Of that amount, $9.81 billion was allocated for various projects, and $3.9 billion was paid in interest on these loans.
