ISLAMABAD: Pakistan’s commerce minister Syed Naveed Qamar said on Wednesday he was hopeful for the resumption of an International Monetary Fund (IMF) loan program as early as this week during his ongoing official visit to Washington.

Pakistan and the IMF have been negotiating to reach a staff-level agreement to unlock a $7 billion bailout facility which is expected to help the South Asian country battle one of the worst economic crises in its history.

Pakistan is facing a major dollar liquidity crunch which forced its government even to restrict the import of essential items amid a rapid depreciation of its national currency.

An agreement with the IMF can help secure the next tranche of about $1 billion and make it easier for Pakistan to deal with other bilateral and multilateral donors, though it will also require the government to carry out tough economic reforms leading to greater inflation.

“The IMF is set to announce staff deal as early as this week,” Qamar said, according to a statement issued by the commerce ministry, while pointing out that the development was likely to boost investor confidence. “Pakistan has taken all the steps needed to unfreeze the IMF funds and this should happen any day now.”

The commerce minister, who is currently in the US for trade talks with Washington, maintained the IMF agreement would assure investors that Pakistan’s economy was beginning to stabilize and that their money would be protected.

“The IMF program is the beginning, not the culmination, of all other monies flowing in,” he continued.

The commerce ministry statement maintained the World Bank had already forecast that Pakistan’s economic growth was likely to accelerate from two percent to 3.2 percent in the current fiscal year through June 2024.

It added that an increase in imports would also benefit its exports.

At the moment, Pakistan’s credit rating has been downgraded by international firms, such as Fitch Ratings, and the country desperately needs immediate financial assistance.