Pakistan is on track to receive its 24th financial rescue since 1958, with the International Monetary Fund (IMF) expected to approve a new bailout. The IMF board is scheduled to meet on Wednesday to discuss the aid package, which is anticipated to be around $7 billion.
Optimism from Pakistan’s Finance Minister
Finance Minister Muhammad Aurangzeb expressed optimism ahead of the IMF meeting, indicating that the loan would likely be approved. According to ARY News, Aurangzeb noted that under the deal, Pakistan would receive an initial tranche of $1-1.5 billion soon after approval.
IMF Conditions and Agreement
In July, Pakistan reached a staff-level agreement with the IMF, having met nearly all the conditions set by the global financial institution. This paved the way for the upcoming financial assistance, as reported by the Express Tribune.
Economic Prospects Look Positive
Aurangzeb highlighted Pakistan’s improving economic indicators, noting that the policy rate had been lowered, investor confidence was growing, and inflation was easing. Additionally, he mentioned the second phase of the China Pakistan Economic Corridor (CPEC) was about to begin, focusing on monetizing the infrastructure developed so far.
Improved Current Account and Market Conditions
The finance minister pointed out that Pakistan’s current account showed a surplus of $75 million in August. He added that with lower oil prices, a more stable dollar, and aggressive interest rate cuts, the country’s current account is expected to remain in good shape.
Aurangzeb remains hopeful that Pakistan’s economic situation will continue to improve in the coming months.