ISLAMABAD: Finance Minister Muhammad Aurangzeb expressed optimism on Thursday about the progress of ongoing discussions with the International Monetary Fund (IMF) concerning external financing.
Speaking informally with journalists, the minister indicated that talks for the approval of the IMF loan program are nearing completion. “Discussions with the IMF on external financing will be finalized soon,” he stated.
Aurangzeb reassured that the approval process by the IMF Executive Board is moving forward smoothly. “We are in the advanced stages of obtaining approval from the Executive Board, which will come soon. While we cannot provide an exact date yet, we expect the loan program to be approved by the end of this month,” he explained.
The minister also highlighted ongoing negotiations with Saudi Arabia for an oil loan facility, which would allow deferred payments. Additionally, he noted that both nations are exploring mutual investment opportunities in various projects.
Alongside talks with friendly countries, Aurangzeb confirmed that the government is also in discussions with commercial entities to secure further financing options.
On Tuesday evening, virtual discussions took place between officials from the Finance Ministry and the IMF mission, focusing on key issues such as external financing and revenue generation.
During these talks, Finance Ministry officials updated the IMF on efforts to secure external financing, including loan rollovers and new financial commitments from friendly countries. Sources disclosed that a timeline has been shared with the IMF, and loan rollovers are expected to be completed by next week.
The IMF mission stressed the importance of rolling over $12 billion in debt before the loan can receive approval from the Executive Board. Additionally, the IMF urged the Federal Board of Revenue (FBR) to meet its revenue targets for the month and requested a detailed plan from the FBR to address the shortfall and ensure targets are met.
