IMF $7 billion bailout package for Pakistan delayed until September 6

ISLAMABAD: The highly anticipated $7 billion bailout package for Pakistan is not scheduled for discussion by the International Monetary Fund (IMF) executive board until September 6.

According to sources within the Ministry of Finance, the IMF Executive Board’s schedule, released up to September 6, includes the agendas of seven countries, including Vietnam, Uganda, and Denmark, but does not yet feature Pakistan.

The government is confident in securing an additional $2 billion in external financing soon.

Efforts are underway to roll over $12 billion in loans from Saudi Arabia, China, and the UAE, with outstanding debts including $5 billion to Saudi Arabia, $4 billion to China, and $3 billion to the UAE.

Moreover, Pakistan is also seeking deferred oil payment facilities and investment from Saudi Arabia, in addition to loans from international financial institutions, bilateral countries, and commercial banks.

Earlier, a staff-level agreement was reached between Pakistan and the IMF on July 12, following extensive negotiations from May 13 to May 23.

The IMF mission, led by Nathan Porter, assured Pakistan of its commitment to collaborative efforts for sustainable economic growth. The government remains optimistic about meeting the required preconditions and securing the bailout package.

According to official documents from the Economic Affairs Division, Pakistan received only $436.3 million in external financial assistance in July, which represents just 2.2% of the $19.21 billion target for this fiscal year.

This is a stark contrast to the same period last year when Pakistan secured $2.89 billion in external loans.