Aurangzeb expects IMF to approve staff-level agreement by late August

ISLAMABAD: Minister for Finance Senator Mohammad Aurangzeb has stated that discussions are ongoing with the International Monetary Fund (IMF) on the financing gap, and he expects the loan deal to be approved by late August.

Talking to Geo News on Tuesday night before his departure for China, Aurangzeb assured that these discussions would not impact the approval of staff-level agreement.

“The International Monetary Fund’s executive board expected to approve the staff-level agreement by the end of August, following the summer break,” the finance czar told Geo News. This month, Pakistan and the IMF reached an agreement for the $7 billion loan programme spanning 37 months.

Aurangzeb said he would be leaving on Tuesday night for the visit to China along with Federal Minister for Energy (Power Division) Awais Leghari. To a question, the minister said, on the top of the agenda for the trip were discussions on energy sector reforms and Panda bonds with Chinese officials.

In his visit to China, the finance minister may explore the possibility of rescheduling Chinese independent power producers’ (IPPs) debt of $15.4 billion by having the tenure of the amount extended by five years, from 2036 to 2041, The News reported citing sources last week.

Aurangzeb said he would also thank his Chinese counterpart for Beijing’s unwavering support to Pakistan on various forums. Noting that Pakistan was aiming to enter China’s capital market, Aurangzeb said Beijing was as important to Islamabad as Washington.

The former banker said that during the visit, he would update Chinese officials on changes to power distribution companies and their boards. “Stability is not achieved overnight and discussions are ongoing in all sectors,” the finance minister said adding, “Negotiations have already begun with retailers and developers, and similar talks will be held with stakeholders in the agricultural sector.”