The Pakistan Tehreek-e-Insaf (PTI) party, has approached the International Monetary Fund (IMF) to incorporate considerations of Pakistan’s political stability into its ongoing financial aid discussions.
This request was articulated in a letter from PTI to the IMF, as confirmed by senior party sources. The specifics of the letter are yet to be disclosed, but the party promises to release more information soon.
The IMF has acknowledged that it has not yet received the letter. This development follows the IMF’s decision to not comment on Pakistan’s political situation, especially after calls for an audit of the disputed February 8 elections before continuing talks with Islamabad.
Financial analysts, such as Sohail Ahmed from Topline Securities, believe this move by PTI will not significantly impact the market, as the IMF conducts its own assessments.
This request comes at a time when Pakistan’s economy faces severe challenges, including high inflation and dwindling foreign reserves, despite a $3 billion bailout from the IMF last summer. Additionally, China has extended a $2 billion loan to Pakistan for another year to help ease financial strains.
With the expected formation of a new government by Khan’s opponents, analysts suggest further IMF support will be necessary after the current bailout ends in April. Khan has been accused by the opposition of endangering a previous $6 billion IMF deal, a charge he denies. The IMF has stated its readiness to support Pakistan with a new arrangement post-election to address ongoing economic issues, contingent on a request from the new government.
