IMF board to meet today to approve $7bn loan for Pakistan

The International Monetary Fund Executive board said it would consider “Pakistan – 2024 Article 4 Consultation and Request for an Extended Arrangement under the Extended Fund Facility”.

Pak finance minister Muhammed Aurangzeb said the IMF board is likely to approve the program during today’s meeting. The finance ministry expressed optimism stating that the policy rates have been lowered and investors are beginning to trust more and investment in the projects are on the rise.

He also mentioned that the government measures are helping to transform the financial condition of the country and has resulted in reduction in inflation rates.

“Both the inflation and interest rates have decreased”, stated the Finance Minister. He also added that the second phase of the China Pakistan Economic Corridor (CPEC) is set to begin in the South Asian Islamic Republic.

He explained that while the first phase of the Economic Corridor focussed on infrastructure development, the second phase will prioritise the monetisation of this infrastructure. Having strong foundations already built for economic stability, the nation’s private sector has the potential to drive the country’s economic growth.

Pak’s current account is in a very favourable position having noted a surplus of $75 million achieved in August 2024. The minister said that he hopes that with oil prices being lowered in the near future, a softer dollar rate and an aggressive rate cut that had already been reduced by 450 bps, the current account is to be in a good position.