IMF board to discuss $7bn Pakistan loan deal on 25th

ISLAMABAD: The International Monetary Fund (IMF) has finally added Pakistan’s new 37-month Extended Fund Facility (EFF) to the agenda for its Executive Board meeting scheduled for September 25.

The global lender said in a statement on Thursday that its executive board would meet on September 25 to discuss the approval of $7 billion EFF agreement reached with Pakistan. “Islamabad is implementing the terms of the 37-month agreement,” it added, Geo News reported.

Islamabad and the global lender reached an agreement on the 37-month loan programme in July. The IMF has said the programme was subject to approval from its executive board and obtaining “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners”.

Islamabad has to secure external financing of $2 billion from bilateral and commercial lenders within the ongoing week.Meanwhile, Prime Minister Shehbaz Sharif has heaped praise on friendly nations for extending all-out support to help Islamabad secure the bailout package. Ahead of the IMF statement, the PM termed the progress on the bailout “good” and praised the friendly countries support in this regard.

“We have to get rid of debts […] Pakistan must stand on its own feet,” the PM stressed while addressing the federal cabinet meeting, hoping that the forthcoming IMF package would be the country’s last.

PM Sharif said the friendly nations have once again extended their support as he refused to divulge details. “They have repeated the history and supported Pakistan.” However, he regretted Pakistan is a nuclear country and “repeated requests for loans will decrease its importance”. He also lauded the announcement by the State Bank of Pakistan to slash the policy rate by 2 per cent, calling it a step to boost investors’ confidence. He hoped the policy rate will be slashed to single-digit, just like inflation rate.