Pakistan, facing financial strain, is poised to receive its 24th IMF bailout since 1958. The International Monetary Fund (IMF) board is scheduled to convene on Wednesday to deliberate the proposed $7 billion rescue package.
Ahead of the crucial meeting, Pakistan’s Finance Minister Muhammad Aurangzeb voiced optimism regarding the bailout’s approval. In an interview with ARY News, he expressed confidence that the loan would likely be granted. Under the terms of the IMF agreement, Pakistan is anticipated to receive the initial tranche of $1-1.5 billion upon the IMF board’s approval, according to the Express Tribune.
In July, Pakistan reached a staff-level agreement with the IMF after meeting nearly all the stipulated conditions, according to the Express Tribune. This achievement paved the way for the potential bailout package.
Anticipating the approval of the bailout, Aurangzeb painted a positive picture of Pakistan’s economic outlook. He highlighted a series of recent positive developments, including a reduction in the policy rate, a surge in investor confidence, a decline in inflation, and the impending commencement of the second phase of the China Pakistan Economic Corridor (CPEC).
Aurangzeb elaborated on the second phase of CPEC, emphasizing its focus on monetizing the infrastructure already established. He also expressed optimism regarding the current account situation, noting a surplus of $75 million in August. He expects this trend to continue improving in the coming days. He cited softer oil prices, a weakening dollar, and aggressive rate cuts as contributing factors to the improved current account balance.
The potential IMF bailout, coupled with these positive economic indicators, signals a glimmer of hope for Pakistan as it navigates its financial challenges.
