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IMF board to approve Pakistan’s $7bn bailout package in mid-August

by Web Desk
July 25, 2024
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The Executive Board of the International Monetary Fund (IMF) is expected to meet in mid-August to finalize the approval of a $7 billion rescue package for Pakistan.

This development follows the staff-level agreement reached between Pakistan and the IMF on 12 July.

The IMF’s Executive Board is expected to give its final approval within four to six weeks of the staff level agreement. However, before this meeting can take place, Pakistan needs to secure assurances of external funding.

In addition to the rescue package, the IMF indicated that discussions would soon begin on a new program to address risks related to climate change and natural disasters. Finance Ministry sources say the IMF has indicated it is considering Pakistan’s proposed request for funding.

Sources indicate that Pakistan needs to identify and prioritize long-term climate change projects. The IMF’s Risk and Sustainability Financing (RSF) program, which offers affordable and long-term financing, will play a key role in this regard.

For effective implementation, Pakistan will have to work with other international organizations, finance ministry sources added, to ensure comprehensive support and funding for these climate initiatives.

The upcoming IMF Board meeting marks a major step in Pakistan’s financial recovery and its efforts to address both its economic and environmental challenges.

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