Pakistan says meeting IMF conditions may lead to $7 billion loan

On September 13, 2024, news from Islamabad. Pakistani Prime Minister Shahbaz Sharif said on Thursday that Pakistan has met all the conditions set by the International Monetary Fund (IMF) and is eligible to receive a new $7 billion loan to boost economic development.

At a cabinet meeting, Sharif praised the finance team and other advisers for complying with IMF requirements. The IMF is expected to officially approve the loan on September 25 when its executive board will hold a meeting. Sharif particularly thanked China for its help in Pakistan's bailout process but did not disclose more details.

The IMF has asked Pakistan to expand its tax base and eliminate energy subsidies. The Sharif government has implemented this requirement, but it has also raised concerns among Pakistani people about high energy bills. In a statement on Thursday, the Pakistani Ministry of Finance said that all issues with the IMF have been “amicably” finalized.

Two months ago, the IMF said it had reached a staff-level agreement with Pakistan on a new $7 billion loan agreement. Currently, Pakistan is facing a serious economic crisis. Sharif hopes that the country can reduce its dependence on foreign loans in the coming years. If approved by the IMF executive board, the new loan agreement will last for 37 months.