ISLAMABAD: The International Monetary Fund (IMF) Executive Board is expected to approve a US $7 billion bailout package for Pakistan in August, local media reported on Thursday citing sources.
According to media reports, the International Monetary Fund (IMF) Executive Board meeting is expected to be held next month.
The IMF and Pakistan had reached a staff-level agreement on July 12 regarding the package. The IMF Board is likely to give final approval to the agreement within 4-6 weeks.
The sources in the Finance Ministry, as cited by local media, said that before the board meeting, Pakistan will ensure external financing. The current loan program does not include financing for climate change. However, funding for natural disaster risks and climate change is expected in November, media reports added.
The IMF will evaluate Pakistan’s request for climate financing. After the first review meeting, there may be talks on climate change programs.
According to media reports, Pakistan will have to identify long-term priority programs pertaining to climate change. The IMF’s Resilience and Sustainability Facility (RSF) program allows cheap and long-term financing.
To achieve this objective Pakistan will have to work with other international institutions, sources from the Ministry of Finance said.
It is to be noted that on July 13 Pakistan and the International Monetary Fund reached a three-year, $7 billion aid package agreement.
The new programme, which needs to be validated by the Fund’s Executive Board, will help Pakistan cement macroeconomic stability and create conditions for stronger and more resilient growth.
According to an IMF statement, “The programme aims to capitalise on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers and remove economic distortions to spur private sector-led growth,” the IMF statement said.
