IMF Executive Board to approve new loan program for Pakistan in Sept: Finance minister

Pakistan Finance Minister Muhammad Aurangzeb said on Wednesday that the International Monetary Fund's (IMF) Executive Board would approve a new $7 billion loan program for the country in a meeting in September.

He informed the Senate Standing Committee on Finance and Revenue that the government was fully engaged with the IMF on moving in the "right direction" and that procedures needed to be followed.

Pakistan had reached the agreement with the IMF in July and the finance minister had earlier said it would be approved by the international lender's Executive Board in August.

The IMF has asked the government to fulfil prior conditions, including getting loans worth $12 billion rolled over by friendly countries, prior to the meeting.

The Senate committee, which had taken up the Deposit Protection Corporation (Amendment) Bill, 2024, directed the finance minister to present it in the National Assembly on Monday.

Aurangzeb informed the committee that it was necessary to get the bill passed by both the National Assembly and the Senate prior to the IMF meeting.

Meanwhile, a representative from the law ministry informed the committee that the caretaker government had already approved the bill in January. However, committee member Farooq H. Naek noted that the caretaker government did not have the power to approve the bill and the government needed to present it in both houses of parliament.