Pakistan expected to face another delay in unlocking IMF's bailout programme

Despite the Finance Minister's optimism for the International Monetary Fund’s (IMF) Executive Board’s approval for a $7 billion bailout programme in September, the global loan lenders are not ready to meet with Islamabad till next month.

The Executive Board of the IMF has released its schedule for September beginning, which does not show their sitting with Islamabad until September 4.

However, Pakistan was actively working to secure a rollover of $12 billion in external financing from China, Saudi Arabia, and the United Arab Emirates (UAE) to unlock a 37-month-long bailout programme.

On August 21, FinMin Aurangzeb claimed that the country would receive approval from the Fund’s Board at the beginning of September.

Speaking to the media in Islamabad, the Finance Czar said the discussions between Islamabad and the IMF are held every second day, and China, Saudi Arabia, and UAE have given a positive response to the IMF as well.

“Pakistan needs $2 billion external financing for the ongoing fiscal year, and $3 billion for a 37-month to bridge the financial gap, and friendly and brotherly countries are attempting to bring the IMF’s Executive Board into confidence,” he said.

The IMF third time excluded Pakistan from its meeting schedule. 

Earlier the cash-strapped country was expecting the loan by the end of August, but it had not been added to the meeting schedule of August 30th.

Sources attributed the delay in the bailout programme to the non-timely rollover of external financing, and avoiding following the IMF’s conditions related to hiking prices on electricity to shrink the circular debt in the power sector.