IMF offers support in formulation of economic plan for Pakistan

The International Monetary Fund (IMF) on Friday offered its full support in formulating a new economic programme for Pakistan if the newly-elected coalition government seeks one.

“We look forward to engaging with the new government to complete the second review under the current stand-by arrangement and, should the government request, support the formulation of a new medium-term economic program,” local media reported, quoting a spokesperson of the global lender as saying. 

In response to a letter written by the jailed founder of Pakistan Tehreek-e-Insaf (IMF) Imran Khan, the IMF said that while it did not comment on domestic political developments, it encouraged the fair and peaceful resolution of all electoral disputes, given the importance of the institutional environment for economic stability and growth.

“The IMF, as an international institution with a narrow mandate on economic issues, does not comment on domestic political developments.” 

The spokesperson said that “in terms of our engagement with Pakistan, our aim is to support the implementation of strong policies to deepen financial stability, address the longstanding economic and underlying balance of payments challenges, and restore sustained and inclusive growth for the benefit of all Pakistani citizens”.

Earlier, the IMF’s communications director said in a press briefing on Thursday that the global lender was ready to send a mission for the second review of the Stand-by Agreement (SBA) shortly after the new government formed a cabinet. 

“We look forward to working with the government to ensure stability, macroeconomic stability, for the good of the people of Pakistan,” said Julie Kozack. 

The focus, therefore, is currently on completion of the current Stand-by program, which ends in April 2024, she elaborated in response to a query regarding Pakistan. 

Ms Kozack also refrained from commenting on the ongoing political situation in Pakistan.