The International Monetary Fund’s Executive Board is expected to take Pakistan’s 37-month Extended Fund Facility Arrangement (EFF) of about $7 billion on agenda on September 25.
Kozack in a press briefing on Thursday, said that the discussion regarding Pakistan’s loan approval is taking place following Pakistan’s receipt of the necessary financing assurances from “its development partners.”
The spokesperson of the global lender further said that economic stability in Pakistan has been supported by consistent policymaking, which has resulted in the resumption of growth and an increase in the country’s forex reserves.
“The new EFF arrangement follows the successful implementation of the nine-month standby arrangement in 2023,” added Kozack.
Following the development, Finance Minister Muhammad Aurangzeb expressed his gratitude to all relevant institutions, Prime Minister Shehbaz Sharif’s team, and the IMF negotiators.
The debt-hit country reached a staff-level agreement with the IMF in July, but board approval for the 37-month programme had been pending since then. The delay, which was resolved today with the IMF Executive Board adding Pakistan to its agenda, had fueled speculation about whether Pakistan had failed to meet the IMF’s bailout conditions.
