Islamabad: Pakistan has successfully met all the prerequisites set by the International Monetary Fund (IMF), eliminating any obstacles to the approval of the next loan installment under its bailout arrangement. The IMF Executive Board is scheduled to convene in the first week of May to review and potentially approve approximately $1.2 billion under the Extended Fund Facility (EFF), following a staff-level agreement on Pakistan’s third economic review.
Officials from the finance ministry confirmed that Pakistan has complied with all IMF conditions and provided necessary assurances regarding the rollover of loans from allied countries, thereby clearing the path for the disbursement. In addition to the EFF tranche, Pakistan is also anticipated to receive around $210 million through the IMF’s Resilience and Sustainability Facility (RSF) program.
Notably, the IMF has been kept informed about the targeted subsidies on petroleum products, with consultations conducted prior to passing on the impact of rising global oil prices to consumers. The targeted subsidy scheme will be funded through the current fiscal year’s budget, while an emergency reserve of Rs300 billion remains available to address any challenging circumstances.
Meanwhile, discussions continue with Saudi Arabia and the United Arab Emirates to extend the tenure of deposits, with expectations that the UAE will soon confirm its support. Presently, Pakistan holds deposits of $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE at the State Bank of Pakistan.
It is important to note that $2 billion from the UAE is scheduled for repayment this month, with an additional $1 billion due in July. However, officials expressed confidence that these repayments will be managed promptly without complications.
