In a recent development, the International Monetary Fund (IMF) has rebuffed requests from Pakistan Tehreek-e-Insaf (PTI), led by former Prime Minister Imran Khan, to intervene in the country’s domestic political matters. The demand arose following PTI’s call for a review of Pakistan’s February 8 polls before any new economic package could be sanctioned. However, the IMF has firmly stated its stance against meddling in political affairs.
Imran Khan, currently incarcerated, penned a letter to the IMF, urging the global lender to scrutinize the poll results before extending any financial aid to Islamabad. Expressing concerns over the repercussions of loans amidst political instability, Khan questioned the sustainability of such financial assistance and warned against the exacerbation of poverty without substantial investments in the country.
Despite the PTI’s efforts to involve the IMF in investigating alleged electoral irregularities, the IMF has reiterated its commitment to economic matters exclusively. A spokesperson for the IMF emphasized the organization’s narrow mandate on economic issues and refrained from commenting on Pakistan’s internal political developments.
While acknowledging the PTI’s communication regarding the Fund’s engagement with Pakistan under the program, the IMF maintained its focus on economic stability and growth. The IMF encouraged a fair and peaceful resolution of all electoral disputes, underlining the significance of an institutional environment conducive to economic progress.
With Pakistan’s current short-term bailout package set to expire soon, Prime Minister Shehbaz Sharif has authorized the Finance Ministry to initiate discussions for a new Extended Fund Facility (EFF) with the IMF. The previous EFF had lapsed without disbursement due to Pakistan’s failure to meet program conditions.
The IMF expressed readiness to engage with the newly-elected government to complete the second review under the current Stand-by Arrangement. Furthermore, the IMF stands prepared to support the formulation of a new medium-term economic program if requested by the government. The organization aims to assist Pakistan in implementing robust policies to address financial stability, economic challenges, and foster inclusive growth for the benefit of all citizens.
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