ISLAMABAD: The International Monetary Fund (IMF) has released its Executive Board meeting calendar until September 18, but the approval of Pakistan’s $7 billion loan program is notably absent.
Despite continuous efforts, Pakistan is struggling to bridge its external financing gap, which is estimated to be between $3 to $5 billion, according to sources.
The IMF Executive Board is set to review other cases, including Bhutan on September 9 and Norway on September 13. The approval of the 7th review of Suriname is scheduled for September 18.
While a staff-level agreement between Pakistan and the IMF was signed on July 12, Pakistan remains in need of additional financing to meet IMF conditions. The country has applied for a $1.75 billion commercial loan and requested $400 million from the Islamic Trade Finance Corporation of Pakistan. Further, Pakistan has sought $35 million from the Islamic Development Bank and $1 billion from Standard Chartered.
Pakistan has also approached Saudi Arabia for a $1.2 billion loan, while the federal government is hopeful of securing an arrangement for deferred payments with the kingdom to fulfill IMF conditions. The government continues to seek solutions to close the financing gap to unlock the much-needed IMF loan.
