Finance Minister Muhammad Aurangzeb expressed optimism about the progress of ongoing talks with the International Monetary Fund (IMF) regarding external financing.
In an informal conversation with journalists on Thursday, the minister stated that discussions for the approval of the IMF loan program are at an advanced stage and will soon be finalized. “Talks with the IMF on external financing will be finalized soon,” he remarked.
Aurangzeb emphasized that the approval process of the loan programme from the IMF Executive Board is progressing smoothly.
“We are at an advanced stage for approval from the Executive Board, and it will come soon. The final date for the approval cannot be given yet,” he maintained, but assured that the loan program is expected to be approved by the end of this month.
The minister also highlighted ongoing negotiations with Saudi Arabia for an oil loan facility, allowing deferred payments. He noted that mutual investment opportunities in various projects are also being explored with the Kingdom.
In addition to talks with friendly countries, Aurangzeb confirmed that the government is engaging with commercial organizations to secure further financing options.
Virtual discussions between officials from the Finance Ministry and the IMF mission took place on Tuesday evening, focusing on critical issues of external financing and revenue generation.
During the talks, Finance Ministry officials briefed the IMF mission on the government’s efforts to secure external financing. This included updates on loan rollovers and new financing commitments from friendly countries. Sources revealed that a timeline has been provided to the IMF, with expectations for loan rollovers to be completed by next week.
The IMF mission emphasized the importance of rolling over $12 billion in debt before the loan can be approved by the Executive Board.
The IMF mission has expressed the need for the FBR to meet its revenue targets for this month. In response, the IMF has requested a detailed plan from the FBR to bridge the gap caused by the shortfall and ensure that revenue targets are met.