Finance Minister Muhammad Aurangzeb has expressed strong optimism regarding the International Monetary Fund’s (IMF) review of Pakistan’s $7 billion Extended Fund Facility (EFF), scheduled for tomorrow (Wednesday).

Pakistan and the IMF reached an agreement on the 37-month loan programme in July. The IMF said the programme is subject to approval from its executive board and obtaining “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners”.

Additionally, there are worries that the government has struggled to secure new funding to address an external financing gap of $2 billion for the current fiscal year.

Prime Minister Shehbaz Sharif said earlier the month that “friendly” countries have helped Pakistan meet the requirements necessary to secure an IMF bailout.

The IMF’s board is set to convene on September 25 to evaluate the EFF for Pakistan. This meeting follows concerns that the release of funds may be contingent on delays in debt rollover confirmations from China, Saudi Arabia, and the UAE.

Aurangzeb stated in an interview with Geo News, “We are very hopeful that the board will approve the 37-month, seven billion dollar programme, under which we are fully committed to implementing structural reforms.”

He highlighted the government’s intention to convey a clear message that it is not “desperate to borrow” as both KIBOR and policy rates decline.

“If we choose to borrow domestically, we will do so on our own terms,” referencing the government’s decision to reject bids for Treasury Bills and Pakistan Investment Bonds.

Aurangzeb noted that such actions are supported by the successful conclusion of the nine-month stand-by arrangement with the IMF. He expressed gratitude to the Chinese government for its longstanding partnership and support in relation to the Fund programme.

Pakistan and the IMF reached an agreement on the 37-month loan programme in July. The IMF said the programme is subject to approval from its executive board and obtaining “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners”.

Looking ahead, the minister stressed the need for adhering to the reform agenda, which includes improvements in taxation, energy, and the privatization of state-owned enterprises. He affirmed that the government remains committed to such a course of action.

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According to the finance ministry, the country secured $57.27 billion in external loans, which are separate from the IMF programme, over the last five years.

Of this amount, $9.81 billion was obtained for “various projects.” Moreover, $3.9 billion has been repaid in interest or markup on these external loans.