IMF likely to approve loan program for Pakistan
- By Web Desk -
- Sep 12, 2024
WASHINGTON: The International Monetary Fund (IMF) is expected to approve the loan program for Pakistan during its Executive Board meeting scheduled later this month, ARY News reported on Thursday.
IMF’s Director of Communication, Julie Kozek, confirmed that an Executive Board meeting scheduled to take place on September 25 in a press briefing, adding that negotiations for a new $7 billion loan program were finalized back in July.
On the other hand, the Finance Minister of Pakistan – Muhammad Aurangzeb – announced that all matters with the IMF have been settled amicably, stating, “Alhamdulillah, the Prime Minister is grateful to the IMF negotiation team and related institutions.”
He highlighted that the economy is now transitioning towards growth following stabilization.
According to the minister, finalization of the agreement will occur during the IMF board meeting later this month.
He added that a reduction in the policy rate will boost investment and business activities, creating employment opportunities.
READ: IMF ‘ruined’ Pakistan’s economy, claims Sheikh Rasheed
Furthermore, Aurangzeb emphasized that the continuous reduction in the inflation rate has begun providing relief to the common man.
‘IMF program may be in jeopardy’
While the loan is seen as a significant achievement, economists warn that Pakistan faces major challenges in meeting the strict conditions imposed by the IMF.
Senior journalist and analyst Mehtab Haider, during an appearance on ARY News’ Sawaal Yeh Hai, raised concerns about Pakistan’s ability to secure a $12 billion loan rollover from China, Saudi Arabia, and the UAE.
Haider emphasized that if these loans are not rolled over soon, Pakistan may struggle to meet its IMF payment obligations.
Additionally, failure to secure foreign investment and sign the Letter of Intent (LOI) could put the entire IMF program at risk.
Haider cautioned that any attempt by the government to sidestep IMF requirements may further jeopardize the country’s economic situation.