Title: IMF supports new programme for Pakistan, urges resolution of electoral disputes
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The International Monetary Fund (IMF) said on Friday it will support formulating a new economic programme for Pakistan if the country's new government seeks one, while encouraging the fair resolution of all electoral disputes.
The fund, however, added that it did not comment on domestic political developments.
PTI founder Imran Khan had penned a letter to the IMF, urging the global lender to give the poll results a thorough once-over before cutting any new cheques for Islamabad.
"If the country gets a loan in such a situation, then who will return it?" he questioned, expressing concerns that such a loan could lead to an increase in poverty.
The former prime minister warned that without substantial investment in the country, the burden of loans would continue to rise, underscoring the need for political stability.
The spokesperson for the monetary body, Esther Perez, said the fund's "aim is to support the implementation of strong policies to deepen financial stability, address the longstanding economic and underlying balance of payments challenges, and restore sustained and inclusive growth for the benefit of all Pakistani citizens”.
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Perez added that the IMF will support formulating a new economic programme for Pakistan if the new government seeks one.
“We look forward to engaging with the new government to complete the second review under the current stand-by arrangement and, should the government request, support the formulation of a new medium-term economic program," said the fund's spokesperson.
After a new cabinet is formed, the IMF is ready to send a mission for the second review of the stand-by arrangement, its communications official Julie Kozack told a briefing, adding that its focus is to complete the existing programme, which ends in April.
"With good compliance of IMF stand-by arrangement, I think the probability for Pakistan to get a 3 to 4-year programme is high," said Mohammed Sohail, the CEO of Karachi-based Topline Securities.
Pakistan's sovereign dollar bonds gained as much as 4 cents on Friday, to hit their highest level since early 2022. The 2036 maturity gained the most, adding 4.13 cents to trade at 77.68 cents by 1057 GMT, on track for a weekly rise of some 6 cents, its third straight week of gains, Tradeweb data showed.
The US has urged Pakistan to “continue working with the International Monetary Fund (IMF) and other global financial institutions” to achieve economic stability in the country.
“The United States supports Pakistan’s efforts to break free from the vicious cycle of debt and financing,” State Department spokesperson Matthew Miller said in a daily news briefing last week.
The spokesperson was responding to a question about a letter sent by ex-PTI chairman Imran Khan to the IMF, suggesting linking the next loan facility to an audit of the Feb 8 general elections in the country.
Earlier, a letter spearheaded by US Congressman Greg Casar and signed by 30 other members of Congress expresses concern about “pre- and post-poll rigging” in the Feb 8 general elections.
The letter asks Biden to urge “Pakistani authorities to release anyone who has been detained for engaging in political speech or activity”. It further stated to “make clear to Pakistani authorities that US law provides for accountability for acts that violate human rights.”
“The results of Pakistan’s election should represent the will of the people,” Casar wrote in a post on X.
Published Date: 08-Mar-2024
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