IMF looking forward to working with new govt

Spokesperson declines to comment on Imran’s letter to global lender

ISLAMABAD:

The International Monetary Fund (IMF) has said that it looks forward to working with the new government in Pakistan for "macroeconomic stability and prosperity for Pakistanis".

“We look forward to working with the new government on policies to ensure macroeconomic stability and prosperity for all of Pakistan’s citizens," Head of the Communications Department at the IMF Julie Kozack said in response to a question about whether Pakistan was on track to secure the third tranche of the Stand-By Agreement (SBA) reached in June 2023.

“On January 11, the IMF Executive Board approved the first review of the Stand-By Arrangement with Pakistan that brought total disbursements under the Stand-By Arrangement to $1.9 billion,” Julie added.

“The Stand-By Arrangement is supporting the authority’s efforts to stabilise the economy and to, of course, with a strong focus on protecting the most vulnerable.”

The IMF spokesperson also stated that the authorities maintained economic stability during the caretaker government’s tenure.

“This has been done through strict adherence to the fiscal targets while also protecting the social safety net. It has been done by maintaining a stern monetary policy stance to regulate inflation, and to continue to grow the foreign exchange reserves,” she added.

Read: IMF loan uncertainty very high

To a question about Pakistan Tehreek-e-Insaf founder Imran Khan’s possible letter to the IMF, the spokesperson said, “I’m not going to comment on ongoing political developments. So, I don’t have anything else to add to what I just said.”

In an unofficial conversation with media persons at the Adiala Jail, Imran revealed having written a letter to the IMF, asking it to make its next loan programme conditional to Pakistan conducting an audit of the Feb 8 general elections.

Imran stated that the letter raises concerns about obtaining loans in such circumstances, questioning who would be responsible for repaying the international monetary body in the current circumstances.

Notably, Pakistan and the IMF reached an SBA worth $3 billion in June 2023, following which $1.2 billion was immediately disbursed to avoid default.

Earlier, on Jan 11, the IMF executive board completed its first review of the country’s economic reform programme, which paved the way for Pakistan to get $700 million.

Following the IMF’s help, the total disbursements under the programme reached to $1.9 billion. It is expected that the IMF programme will conclude in the second week of April.