According to Jameel Ahmed, Governor of the State Bank of Pakistan (SBP), Pakistan is close to finalizing an additional $2 billion in foreign aid. This financial assistance is essential for the country as it aims to meet the conditions required to unlock a $7 billion bailout package from the International Monetary Fund (IMF).
In a recent interview with Dawn, State Bank Governor Jameel Ahmed emphasized the central bank’s efforts to secure external funding. The expected aid is a crucial step toward stabilizing Pakistan’s short- and medium-term economy.
Furthermore, in an interview with Reuters, State Bank Governor Jameel Ahmed expressed optimism that Pakistan could secure an additional $4 billion from Middle Eastern commercial banks by the next fiscal year. This initiative is part of a broader effort to address the country’s external financing gap.
State Bank Governor Jameel Ahmed assured Pakistan is not facing a debt crisis, thanks to ongoing financial support from countries like China, Saudi Arabia, and the UAE. These nations have extended loans and rollovers, expected to continue for the next three years, giving Pakistan time to stabilize its finances.
He also highlighted that Pakistan’s fiscal needs are lower than the IMF’s forecast of 5.5% of GDP, crediting improved financial management for reducing external borrowing needs.
The central bank has recently lowered interest rates from 22% to 19.5% to curb inflation. State Bank Governor Jameel Ahmed cautioned that future rate decisions will depend on economic developments, with the next meeting of the Monetary Policy Committee scheduled for September 12.
Despite economic challenges, Jameel Ahmed is confident that Pakistan will meet its financial obligations without falling into a debt crisis, with continued support from international allies and careful monetary policy management.
