This decision is anticipated to provide significant
financial support to Pakistan, which continues
to face economic challenges
News Desk
Washington, D.C. – The International Monetary Fund (IMF) is likely to approve a loan for Pakistan on September 25, 2024, according to Julia Kozek, IMF’s Director of Communications. This decision may bring much-needed financial help as Pakistan faces economic struggles.
IMF’s Official Announcement
During a recent news conference, Kozek said the IMF board will review Pakistan’s case later this month. “We expect the approval of a loan for Pakistan during the upcoming meeting,” she stated. The loan aims to stabilize Pakistan’s economy by fixing its financial problems.
Prime Minister Shehbaz Sharif’s Reaction
After the IMF announcement, Prime Minister Shehbaz Sharif thanked Pakistan’s allies for their help during the talks. “Our friendly and brotherly countries have come all the way to support us again,” he said at a cabinet meeting on Thursday.
Sharif confirmed that Pakistan had met all the necessary conditions for the IMF loan. He also welcomed the State Bank of Pakistan’s (SBP) move to lower the policy rate from 19.5% to 17.5%. He said this will help boost exports, investment, and farming. “This move will spark economic activity, and we hope the policy rate will fall to single digits soon,” he added.
Sharif stressed that, with financial stability, the government will now focus on growing the economy.
Meeting with Sindh Chief Minister
Prime Minister Shehbaz Sharif also met Sindh Chief Minister Murad Ali Shah on Thursday. They talked about how to implement the IMF programs and ongoing federal projects and welfare plans in Sindh. Deputy Prime Minister Ishaq Dar, Planning Minister Ahsan Iqbal, and other ministers attended the meeting. The group discussed ways to improve cooperation between the federal and provincial governments.
Stock Market Reaction
News of the likely IMF loan lifted investor confidence at the Pakistan Stock Exchange (PSX). The KSE-100 Index rose by 400 points after the announcement. Investors see the IMF loan as a sign of stability for Pakistan’s economy.
Muhammad Ali Khan, a market analyst at Al Meezan Investment, said, “The market is reacting positively to the news. Economic, banking, and manufacturing sectors will benefit from better liquidity.”
Conclusion
The government remains hopeful as the IMF Executive Board prepares to review Pakistan’s case on September 25. The loan could provide critical financial support. Still, further reforms will be needed for long-term growth.
