PTI asks IMF to mull ‘political stability’ in loan talks

ISLAMABAD:

The PTI has asked the International Monetary Fund (IMF) to factor in the country's political stability in any further bailout talks, it emerged on Wednesday.

Addressing a news conference in Islamabad, PTI stalwart Barrister Gohar Ali Khan confirmed that the party had sent a letter to the IMF, adding that it would reveal its content after it reached Washington.

Giving hints of what the letter might read, Gohar said the PTI had reminded the IMF of its promise that transparent elections would be held in Pakistan.

However, The Express Tribune has obtained a copy of the letter. Addressed to IMF Managing Director Kristalina Georgieva, the PTI in the letter claimed that it did not want to stand in the way of any global lender’s facility for Pakistan.

However, the party stressed the need for the necessary reforms along with the facility to facilitate the repayment of the loans.

“The IMF can negotiate only with an elected government that has the confidence of the people,” it stated.

The party urged the Washington-based lender to take into account its policy guidance note prepared in 1997.

“It is a well-established reality that a government without legitimate representation, when imposed upon a country, carries no moral authority to govern, and, in particular, to carry out taxation measures.”

The letter pointed out that in the last interaction held between PTI founding chairman and former premier Imran Khan and IMF representatives in 2023, the party had agreed to support the global lender’s financing facility involving Pakistan on the condition and reassurance of a free and fair election in the country.

Also read: PTI says not an obstacle to IMF programme

“In the foregoing backdrop, it is noteworthy that the general elections conducted in Pakistan on February 8, 2024, on which public expenditure of about PKR 50 billion (or US$ 180 million) was incurred, were subjected to widespread intervention and fraud in the counting of votes and compilation of results. This intervention and fraud have been so brazen that the IMF’s most important member countries including the US, Great Britain, and countries forming part of the European Union have called for a full and transparent investigation into the matter. A mission of the European Union has carried out an examination of the general elections of February 8, 2024. The report of the said mission must be examined by the IMF and made available to the people of Pakistan.”

The letter continued that it was not just the PTI, but several other political parties in Pakistan, along with a number of western governments, Commonwealth observers, local civil society organisations, as well as international print and electronic media, have called for an independent probe into the claims of intervention and electoral fraud in the country on and after February 8 this year.

“We do not call for the IMF to adopt the role of an investigative agency. There are at least two indigenous organizations in Pakistan namely the Free and Fair Election Network (FAFEN) and PATTAN-Coalition38 that have proposed comprehensive methodologies to conduct an audit of the General Elections 2024 which, with some modifications, could be implemented locally to the satisfaction of all stakeholders. Such a role by the IMF would be a great service to Pakistan and its people, and could become the harbinger of enduring prosperity, growth, and macroeconomic stability in the country.”

Speaking at the news conference, PTI’s Omar Ayub maintained that his party had neither stood in the way of an IMF programme in the past, nor would it do so in future.

Also read: Imran wants IMF loan contingent upon vote audit

He added that the IMF had reached an understanding with the PTI that fair and free general election would be held in the country.

However, he lamented the alleged massive rigging that took place in the recent polls
Ayub maintained that the “Pakistan Democratic Movement (PDM) 2.0” could not introduce any reforms.
He added that these people could not use money properly.

Ayub demanded that FAFEN should audit the general polls and bring out the facts.

He claimed that the PTI wanted the loans to be used for reforms and not wasted on lavish spending.
Talking to the media, PTI’s Muzzammil Aslam said his party had been falsely accused of sabotaging the IMF programme.

He pointed out that Pakistan had received 14 programmes from the IMF and managed to complete only one of them.

Aslam noted that 12 of the 14 programmes were taken by the PPP and PML-N.

“The largest of them was taken by the PPP in 2008.”

In an email to Reuters, the IMF confirmed it had yet to receive the PTI’s letter.

Last week, the IMF declined to comment on the country's political situation after the PTI founding chairman’s aides said they would urge the lender to call for an independent audit of the country’s disputed February 8 elections before engaging in further talks with Islamabad.

Sohail Ahmed of Karachi-based Topline securities said the letter was unlikely to have a major market impact. "The IMF will do its own due diligence," he added.

(With input from Reuters)