Crucial IMF meeting to consider the loan plan for Pakistan today

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ISLAMABAD, Aug 29(ABC): The executive board of the International Monetary Fund (IMF) is all set to meet today (Monday) to consider the loan plan for Pakistan, while authorities of the cash-strapped nation expect the resumption of the month-long stalled $6 billion bailout programme.

However, a rally in the nation’s assets may fizzle out amid escalating political tensions.

Pakistan also made a request to the Fund’s Board to augment the Extended Fund Facility (EFF) from $6 billion to $7 billion and jack up the timeframe from September 2022 to June 2023.

A recent letter written by KP’s finance minister to federal minister for finance might create an embarrassing situation for Pakistan during the IMF’s Board meeting but official circles are confident that the Board will not take up this issue. However, there is an apprehension that India’s representative might make efforts to highlight this issue at the meeting to embarrass Pakistan’s representative.

According to Columbia Threadneedle Investments, Tellimer Limited and Natixis SA predictions, Pakistan will win a loan approval from the IMF board when it meets on Monday, “paving the way for the release of $1.2 billion in immediate funds.”

However, amid ongoing political turmoil in the country, it is expected that the two-day later focus will shift to PTI Chairperson Imran Khan’s court hearing as he battles a string of legal troubles.