ISLAMABAD : July 8, 2023: The International Monetary Fund (IMF) is meeting with the political leadership are aimed at seeking a guarantee that who so ever wins next general elections in Pakistan will not reverse its programme.
IMF team has held parleys with Pakistani political leaders in the last couple of days to seek their guarantee that its progrmme of reforms attached with announced bailout package of $ 3 billion will not be reversed . IMF team had called on top leadership of all the political parties including the Pakistan Tehreek e Insaf (PTI) as it had very discouraging experience in this regard. IMF had signed a loan of $ 6.7 billion under its Extended Financial Facility in November 2020.
Then government of PTI had accepted a number of conditions of the fund to secure the deal. However, in 2022 PTI government dishonoured its commitment with IMF and instead announced cut in the oil prices. Similarly, PTI government scaled down the interest rate in violation of its commitment signed with the fund for getting a loan of $ 6.7 billion.
PTI government’s decision of dishonouring written commitment send a shock to IMF. The PTI government decision to trash written agreement with IMF literally turned Pakistan into an unreliable state. It also discredited Pakistan for any international funding or loan.
Having gone through a bad experience, IMF team is securing commitment from all the political parties including PTI that they would honour commitment given by Pakistan this time for not only revival of the ninth review, but also complete the reforms programme attached with the ninth review and any future review if the future government of Pakistan look forward for another loan facility.
All Pakistan Currency Dealers Association (APCDA) chairman, Malik Bostan Khan, told NEWSMAN on Saturday that IMF meetings with the political leadership of Pakistan is an attempt to have direct communication with the political leadership of Pakistan that they would honour commitments given by the current government to seek a bailout package . Malik Bostan Khan believes that the political leadership of Pakistan understands sensitivity and urgency of IMF bailout and it will rise above the board to give a clear message to IMF that every political party of Pakistan will behave responsibly in the future and honour all commitment attached by the fund for release of funds for Pakistan.
IMF board is meeting on July 12 to take up Pakistan’s case for approval of a bail out for it amounting to $ 3 billion. The IMF board out come on its board meeting scheduled for July 12 will depend on finding of its mission’s meetings with Pakistani political leadership.