There is growing unease due to delays in the IMF board approval. The Staff-Level Agreement (SLA) was reached in mid-July, with earlier expectations for board approval in mid-September. While the SLA process was smooth and the Fund team agreed to drop a few taxation measures without altering the total revenue target, the journey to board approval has been somewhat bumpy.

The delay is primarily due to difficulties in arranging the external gross financing gap, a challenge that has recently affected many countries. For instance, in 2022 and 2023, countries such as Zambia and Sri Lanka experienced significant delays—over six months—between the SLA and board approval, reportedly due to disagreements between Western nations and China on debt relief measures.

It is highly unlikely that Pakistan will face such extensive delays today, as global financial conditions have shifted. However, tactical errors on our part, stemming from confusion over geopolitical positioning and ongoing domestic political disputes, are causing unnecessary delays.

The gross financing requirement for Pakistan is $5 billion in additional loans over the 37-month IMF programme. Of this, $2 billion is needed as a firm commitment for FY25, and $3 billion is required as a soft........

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