The final approval of Pakistan’s $7 billion bailout package from the International Monetary Fund (IMF) is still pending, as the country works to meet the stringent conditions set by the global financial institution.
Sources within the Ministry of Finance revealed that the IMF Executive Board’s schedule, which extends through September 6, includes agendas for seven countries—such as Vietnam, Uganda, and Denmark—but does not yet list Pakistan. Officials suggest that a board meeting dedicated to Pakistan could be arranged soon, provided the country meets the necessary preconditions, especially the requirement to secure an additional $2 billion in external financing. The Finance Ministry remains hopeful that this condition will be fulfilled shortly.
Pakistan is also in active discussions with key allies—Saudi Arabia, China, and the United Arab Emirates (UAE)—to roll over approximately $12 billion in debt. The nation owes $5 billion to Saudi Arabia, $4 billion to China, and $3 billion to the UAE.
Additionally, Pakistan is negotiating with Saudi Arabia for an oil loan facility and further investment, while continuing efforts to secure additional funds from international financial institutions, bilateral agreements, and commercial banks.
The staff-level agreement between Pakistan and the IMF was signed on July 12, marking a crucial step toward the bailout, but the final disbursement depends on meeting the agreed-upon conditions. As Pakistan races against time to satisfy these demands, the government is engaged in urgent negotiations to secure this critical financial lifeline.
Meanwhile, the delay in the IMF’s approval of the $7 billion bailout package is causing significant delays in securing external financial assistance for Pakistan. This holdup has slowed the flow of funds from other international financial institutions and countries, resulting in a shortfall in external financial support during the first month of the current fiscal year.
According to official documents from the Economic Affairs Division, Pakistan received only $436.3 million in external financial assistance in July, which is just 2.2% of the $19.21 billion target for this fiscal year. This figure contrasts sharply with the same period last year, when Pakistan secured $2.89 billion in external loans.
The breakdown of the funds received shows that $127.7 million came through the Naya Pakistan Certificate, while international financial institutions provided $201 million. The World Bank contributed $118.8 million, China provided $96.76 million, and the Asian Development Bank (ADB) added over $54 million. The International Bank for Reconstruction and Development (IBRD) provided more than $20 million.
Additionally, various countries contributed $107.6 million in loans last month. Germany lent $3.5 million, Saudi Arabia provided $2.69 million, and Pakistan received grants totaling over $1 million, with the United States providing the largest grant of $4.442 million.
