ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) is likely to approve a $7.6 billion loan for Pakistan by next week to help it overcome its balance of payment (BoP) difficulties, an IMF official based in Washington told The News on Tuesday.

“The Executive board is most likely to approve the $7.6 billion loan under the standby arrangement (SBA) for Pakistan by next week,” he said.He also said there were chances that the board may consider Pakistan’s loan facility within this week, most probably on Friday. However, it seems difficult because it will tighten the schedule of the board’s meeting. The relevant documents have not yet been circulated among the Executive Board members and they will certainly require some time to look into them before approving a loan package for any country.

The Executive Board holds its meeting three times a week — Monday, Wednesday and Friday. The board members will require some time after receiving the relevant documents within the next couple of days.

When Secretary Finance Dr Waqar Masood was asked about the possible schedule of the Executive Board meeting, he said that he did not know exactly when the Fund was going to approve the loan package.

But sources in the IMF said that Pakistan’s loan facility might be approved by the coming Monday and disbursement of the first instalment worth $3 to $4 billion would be made within the ongoing month.

Meanwhile, official sources in the Finance Ministry claimed that Standard & Poorís recent decision to downgrade Pakistan’s ranking from CCC+ to CCC was not based upon the worsening economic, political and security situation in the country. It was aimed at forcing Pakistan under the US pressure to approach the IMF without wasting any time, they said.

“Standard & Poor downgraded Pakistan’s ranking twice in the last five weeks ñ first on October 6 and again on November 14,” said the sources. “It was designed to make it impossible for Pakistan to approach the international markets by increasing the country’s vulnerability through squeezing its available options,” said an official. He claimed that during the last five weeks, all the political and economic indicators had improved.

The official said the world powers wanted to strangulate the countryís economy by pushing ìus against a wall where there was no other option but to approach the IMF.î He said China had announced to provide $ 500 million budgetary support to Pakistan for the current fiscal year, adding Pakistan had almost finalised things with the IMF at the time when the S&P downgraded the countryís ranking.