The executive board of the International Monetary Fund is expected to meet in the first week of May to review Pakistan’s program, with approval of around $1.2 billion likely under the ongoing $7 billion loan arrangement.
According to finance ministry officials, there are currently no major hurdles in the release of the next installment, as Pakistan has fulfilled all key IMF conditions under the program.
Officials said Pakistan is also expected to receive the next $210 million installment under the climate financing Resilience and Sustainability Facility (RSF) alongside the main tranche.
The ministry further said the IMF has been taken into confidence regarding the government’s targeted petroleum subsidy plan, and consultations were held before passing on the increase in global oil prices to consumers. The subsidy amount will be financed from the current fiscal year’s budget, while Rs. 300 billion in emergency funds is also available for difficult conditions.
On the external financing front, officials said Pakistan has already assured the IMF regarding the rollover of deposits from friendly countries, with talks underway for long-term extensions of Saudi and UAE deposits.
At present, the State Bank of Pakistan holds $5 billion in Saudi deposits, $4 billion from China, and $3 billion from the UAE. Of the UAE amount, $2 billion matures this month and $1 billion in July, with officials expressing confidence that these deposits will be rolled over.
