The executive board of the IMF, chaired by SBP chief IMF, is due to meet on August 29.
The IMF will examine at loan disbursement to Pakistan.
“Pakistan has pledged $38 billion; we are overfunded,” claims the interim governor of the SBP.
KARACHI: According to State Bank of Pakistan Acting Governor Murtaza Syed, Pakistan is likely to get a $1.17 billion loan tranche from the International Monetary Fund (IMF) within six days after the Executive Board’s approval.
The Washington-based lender’s executive board is scheduled to meet on August 29 (Monday); observers believe the Fund will provide its final clearance since Pakistan has completed all prior conditions required to restart the halted loan programme.
According to the acting governor, the country’s forex reserves will be restored to $16 billion by the end of the current fiscal year 2022-23, from $8 billion due to the delay in the revival of the IMF agreement and external flows.
“Pakistan has commitments of $38 billion, therefore we are overfinanced,” he said, adding that $4 billion in bilateral assistance would be approved shortly, while the current account deficit is expected to be about 3% of GDP.
Pakistan has sought China, Saudi Arabia, Qatar, and the United Arab Emirates to cover the IMF’s finance deficit.
The $4 billion contribution from friendly nations is divided as follows: $2 billion from Qatar, $1 billion from Saudi Arabia (delayed oil facility), and $1 billion from the UAE (investment). These sums are projected to be received throughout the following year.
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Despite Pakistan’s request to speed up the process, Islamabad reached a staff-level agreement with the Washington-based lender in July, but the board meeting was postponed.
