IMF to okay bailout package for Pakistan next week

The Executive Board of the International Monetary Fund (IMF) is likely to approve a $7.6 billion loan for Pakistan by next week to help it overcome its balance of payment (BoP) difficulties, an IMF official based in Washington said Wednesday on the phone.

“The Executive board is most likely to approve the $7.6 billion loan under the standby arrangement (SBA) for Pakistan by next week,” he said. He also said there were chances that the board may consider Pakistan’s loan facility within this week, most probably on Friday.

However, it seems difficult because it will tighten the schedule of the board’s meeting. The relevant documents have not yet been circulated among the Executive Board members and they will certainly require some time to look into them before approving a loan package for any country.

The Executive Board holds its meeting three times a week - Monday, Wednesday and Friday. The board members will require some time after receiving the relevant documents within the next couple of days.

When Secretary Finance Dr Waqar Masood was asked about the possible schedule of the Executive Board meeting, he said that he did not know exactly when the Fund was going to approve the loan package.

But sources in the IMF said that Pakistan’s loan facility might be approved by the coming Monday and disbursement of the first instalment worth $3 to $4 billion would be made within the ongoing month.