Pakistan set for 24th bail-out since 1958, IMF board meets to approve $7bn loan

Cash-strapped Pakistan is set to have yet another bailout — the 24th rescue since 1958.

The International Monetary Fund (IMF) is having a board meeting on Wednesday to discuss the bailout to Pakistan. It is expected that the IMF will clear the bailout package to the tune of $7 billion.

Ahead of the IMF’s meeting, Pakistan Finance Minister Muhammad Aurangzeb sounded optimistic and said the loan was likely to get approved, according to ARY News.

Under the terms of the IMF deal, Pakistan is expected to get the first tranche of $1-1.5 billion as soon as the IMF board approves the deal, as per the Express Tribune.

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Previously in July, Pakistan had reached a staff-level agreement with the IMF after fulfilling nearly all conditions imposed by the IMF, as per the newspaper.

Ahead of expected approval of the bailout package, Aurangzeb was upbeat about Pakistan’s economic prospects. He said the policy rate has been lowered, investor confidence is on the rise, inflation has come down, and the second phase of China Pakistan Economic Corridor (CPEC) is also about to start, as per ARY.

Aurangzeb said that the CPEC’s second phase is about monetising the infrastructure built so far. He said the current account situation is also encouraging with August reporting a surplus of $75 million. He hoped for the situation to improve further in the coming days.

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With softer oil prices, a softer dollar, and an aggressive rate cut, the current account situation would continue to be in a good position, said Aurangzeb, as per ARY.