Pakistan’s $7 Billion IMF Bailout Package Faces Uncertainty as Executive Board Agenda Excludes It

Pakistan’s much-anticipated $7 billion bailout package from the International Monetary Fund (IMF) has hit a snag as the IMF Executive Board’s schedule until August 28th has been released, and Pakistan’s case is notably absent from the agenda. This development has raised concerns about the disbursement timeline for the crucial financial assistance.

Despite the exclusion, sources close to the matter indicate that the Executive Board has the discretion to add items outside of the official schedule, offering a glimmer of hope for Pakistan. The uncertainty comes after a staff-level agreement was signed between Pakistan and the IMF on July 12th, which many had hoped would pave the way for swift approval by the Executive Board.

The delay in including Pakistan’s bailout package in the official agenda has sparked worries, especially given the country’s dire economic situation. The IMF’s support is seen as vital for stabilizing Pakistan’s economy, boosting foreign reserves, and addressing ongoing fiscal challenges. Finance Minister Ishaq Dar has hinted at the possibility of the board meeting taking place at the end of the month, which could bring the much-needed relief. Typically, after a staff-level agreement is reached, the Executive Board meets within four to six weeks to finalize the agreement. However, the absence of Pakistan’s name on the agenda has led to uncertainty about when the funds will be disbursed.

The new IMF loan program, which is expected to span over 37 months, aims to capitalize on the macroeconomic stability Pakistan has struggled to achieve. The program’s objectives include enhancing public finances, curbing inflation, rebuilding external buffers, and eliminating economic distortions to promote private sector-led growth.