PTI Asks IMF to Consider Political Situation in Further Talks with Pakistan
The Pakistan Tehreek-e-Insaf (PTI) party has requested the International Monetary Fund (IMF) to factor in Pakistan’s ongoing political instability in any future negotiations regarding an economic bailout package.
According to sources within PTI who spoke to Reuters, the party has sent a letter to the IMF outlining its position on the matter. While details of the letter have not yet been publicly disclosed, PTI indicates more information will be shared in due course.
The IMF has confirmed receiving no such communication as yet. A Fund spokesperson noted last week that the current priority is completion of the existing $3 billion Stand-By Arrangement agreed upon last summer. However, the IMF stated it stands ready to support Pakistan’s incoming government through a new program if requested.
This comes after PTI Chairman Imran Khan urged the IMF to conduct an independent audit of Pakistan’s disputed February general elections prior to approving additional funds. Khan has questioned how new loans could be responsibly repaid given the current political climate.
Analysts note Pakistan requires further IMF assistance as the SBA expires in April. But the timing of PTI’s letter raises concerns as it risks miring bailout negotiations in domestic political issues at a critical economic juncture.
The opposition accuses PTI of sabotaging loan negotiations last year under a proposed Extended Fund Facility. Meanwhile, PTI alleges irregularities in the recent no-confidence vote that ousted Khan’s government in April 2022.
Economic uncertainties loom large as Pakistan grapples with high inflation, currency depreciation and reserves declines. The new administration that assumes power after next month’s National Assembly vote will inherit a difficult stabilization task. How the IMF balances PTI’s concerns with the country’s pressing needs remains to be seen.
