The International Monetary Fund (IMF) has said that there is no concept of suspension within its $6 billion Pakistan Extended Fund Facility (EFF) program.
The IMF on Monday in a statement said that “the Fund looks to continue its support to Pakistan and, once a new government is formed, we will engage on policies to promote macroeconomic stability and enquire about intentions vis-a-vis program engagement adding that there is no concept of suspension within IMF programs”.
On the other hand, the Ministry of Finance also said that the “Finance Division and IMF remain engaged in data sharing and reform discussions as part of EFF and there is no truth to speculation about the suspension of the program”.
“IMF has confirmed the same and also clarified that it remains committed to Pakistan’s macroeconomic stability”, it stated.
The statement of the IMF comes in the aftermath of President Dr Arif Alvi’s dissolution of the National Assembly following the dismissal of the no-confidence against Prime Minister Imran Khan.
It is pertinent to note that the IMF had expressed its reservations over the government’s announced amnesty scheme and shared doubts over the financial impact and financing sources of the prime minister’s relief package on electricity and petroleum prices.
The IMF and Pakistan teams are in negotiations for the last one month to complete the seventh review.
It is worth mentioning here that the IMF had in June 2019 approved a three-year, $6 billion loan “to support Pakistan’s economic plan, aimed at returning sustainable growth to the country’s economy and improving the standards of living”.
The 39-month IMF program is scheduled to end in September.
