SBP expects IMF to review $7bn loan this month

September 11, 2024 (MLN): Pakistan expects the International Monetary Fund’s executive board to review its new $7 billion loan program this month after a delay raised investor concerns, Bloomberg reported.

The nation has arranged more than $2bn in financing and assurances from lenders other than the IMF, Jameel Ahmad, governor of the State Bank of Pakistan, said at an analyst briefing after announcing the policy rate Thursday.

The external funding was seen as the final hurdle for an IMF loan.

“All those assurances and external financing have already been arranged by the government and I don’t see any further hurdle now in taking our case to the board,” said Ahmad.

The South Asian nation expected to secure a deal with the IMF in August after the lender approved a 37-month program initially agreed in July.

The country also raised its tax revenue goal by a record 40% and increased energy prices to meet demands set by the IMF.

Pakistan completed its previous $3 billion loan program in April.

The country secured a credit rating upgrade from Moody’s Ratings and Fitch Ratings in late August.

The IMF program brings certainty to Pakistan’s sources of financing to meet its needs over the next two to three years, Moody’s said.

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