Pakistan says it has met all the conditions set by the IMF to get a $7 billion loan

ISLAMABAD– Pakistani Prime Minister Shehbaz Sharif said on Thursday his country had met all conditions set by the International Monetary Fund to qualify for a fresh $7 billion loan to help prop up the economy.

During a Cabinet meeting in the capital, Islamabad, Sharif praised his finance team and other advisers for meeting the requirements of the IMF, which is due to formally approve the loan on September 25, when the global lender’s board of executive directors is due to meet.

Sharif specifically thanked China for helping secure a bailout package for Pakistan but declined to provide further details.

The IMF has asked Pakistan to broaden the country’s tax base and eliminate energy subsidies. Sharif’s government has already complied, raising concerns among Pakistanis who say they cannot afford high energy bills.

Pakistan’s Finance Ministry said in a statement on Thursday that all IMF-related issues had been finalized “amicably.”

Thursday’s announcement came two months after the IMF said it had reached a staff-level agreement with Pakistan on a new $7 billion loan deal.

Pakistan is currently grappling with one of the worst economic crises in its history, and Sharif expressed hope that the country would be able to reduce its dependence on foreign loans in the coming years.

The new loan agreement, if approved by the IMF’s Board of Executive Directors, will be valid for 37 months.