Pakistan is aiming to raise up to $4 billion from Middle Eastern commercial banks by the next fiscal year to address external financing gaps, according to the Governor of the State Bank of Pakistan, Jameel Ahmad. In his first interview since taking office in 2022, Ahmad revealed that Pakistan is also in the “advanced stages” of securing an additional $2 billion in external financing, a requirement for the approval of a $7 billion bailout program from the International Monetary Fund (IMF).

Pakistan and the IMF reached a preliminary agreement on the loan program in July, which is pending approval from the IMF’s executive board. Approval is contingent upon Pakistan receiving timely confirmation of necessary financing assurances from its development and bilateral partners.

Regarding monetary policy, Ahmad stated that recent interest rate cuts have helped slow inflation and keep the current account under control. Pakistan’s annual consumer price index inflation dropped to 11.1% in July, down from over 30% earlier in 2023. The central bank, which cut rates from a historic high of 22% to 19.5% over two consecutive meetings, is set to review monetary policy again on September 12.

Ahmad emphasized the importance of focusing on economic growth and related areas, highlighting the central bank’s role in ensuring price and financial stability before shifting its focus towards fostering growth for job creation and other socioeconomic issues.