Pakistan's IMF Bailout Delayed Again

The International Monetary Fund (IMF) has excluded Pakistan from its Executive Board meeting agenda up to September 4, 2024, creating uncertainty around the anticipated $7 billion bailout package for the country. Despite this setback, Pakistan's Finance Minister Muhammad Aurangzeb remains optimistic, asserting that approval will be granted next month. The government is actively negotiating the rollover of $12 billion in loans from China, Saudi Arabia, and the UAE, alongside a request for an additional $1.2 billion loan from Saudi Arabia to cover a $2 billion financing gap. Currently, Pakistan holds $5 billion in cash deposits from Saudi Arabia, $4 billion from China, and $3 billion from the UAE, in addition to $4.5 billion in commercial debt, primarily to China. This situation marks the third time Pakistan has been omitted from the IMF meeting schedule, despite previous hopes for an August approval. The government seeks to stabilize its economy through these financing efforts amid ongoing financial challenges.