ISLAMABAD – The executive board of the International Monetary Fund (IMF)will meet today (Monday) to consider the loan plan for Pakistan

Pakistan also made a request to the Fund’s Board to augment the ExtendedFund Facility (EFF) from $6 billion to $7 billion and jack up the timeframefrom September 2022 to June 2023.

However, amid ongoing political turmoil in the country, it is expected thatthe two-day later focus will shift to PTI Chairperson Imran Khan’s courthearing as he battles a string of legal troubles.

It should be noted that Pakistan’s dollar bonds have been the topperformers in emerging markets in August after Belarus. Meanwhile, therupee also soared above its peers as investors cheer the prospect of IMFfunds.

However, the development on the political front can put fragile financialstability at risk as supporters of Imran Khan stage protests.

Prime Minister Shehbaz Sharif-led government will get a massive boost withthe resumption of the programme as it will help avert what would be thesecond default in Asia this year after Sri Lanka.

Islamabad needs to pay at least $3 billion to service debt in the firsthalf of fiscal 2023, according to Bloomberg Economics. With the IMF loanpaving the way for more financing, the State Bank of Pakistan expectsforeign-exchange reserves to rise to about $16 billion this fiscal yearfrom $7.8 billion.