All matters with the IMF have been settled, says Aurangzeb

The International Monetary Fund (IMF) has confirmed that its board will meet on September 25 to discuss a $7 billion Extended Fund Facility (EFF) for Pakistan. The country had been expected to secure the deal in August, after the IMF approved the 37-month program agreed upon in July.

Pakistan has raised its tax revenue target by a record 40% and increased energy prices to meet the IMF’s demands. The country also completed its previous $3 billion loan program in April and secured a credit rating upgrade from both Moody’s and Fitch Ratings last month.

At a press briefing, IMF spokesperson Julie Kozack announced that the Fund had reached a staff-level agreement with Pakistan on the EFF in July. “We are pleased to confirm that the board meeting is scheduled to take place on September 25,” she said. “This follows Pakistan’s receipt of necessary financing assurances from its development partners.”

Kozack credited consistent policymaking in Pakistan for supporting economic stability, including the resumption of growth, significant disinflation, and a significant increase in the country’s international reserves.

Pakistan’s Finance Minister Muhammad Aurangzeb expressed gratitude to those involved in the negotiations, stating, “By the grace of God, all matters with the IMF have been settled amicably.” He praised Prime Minister Shehbaz Sharif’s team, IMF negotiators, and relevant institutions.

Aurangzeb emphasized that the economy is moving towards growth after stabilization and that the reduction in the policy rate will “increase investment and business activities” in the country. He also noted that this will create employment opportunities and that the common man is starting to see relief from the trend of continuous reduction in inflation.

Web Desk Karachi