The International Monetary Fund (IMF) has confirmed receiving a letter from the Pakistan Tehreek-e-Insaf (PTI) on February 28, signalling a desire to engage in discussions with the new government regarding the country's loan programme.
In response, an IMF spokesperson stated that while the "IMF, as an international institution with a narrow mandate on economic issues", refrains from commenting on domestic political issues, they have a limited mandate focused primarily on economic matters.
"However, given the importance of the institutional environment for economic stability and growth, we do encourage the fair and peaceful resolution of all electoral disputes," the statement added.
Regarding the Fund's engagement with Pakistan, the spokesperson further said, "our aim is to support the implementation of strong policies to deepen financial stability, address longstanding economic and underlying balance of payments challenges, and restore sustained and inclusive growth for the benefit of all Pakistani citizens. This includes stronger public finances, through high quality revenue measures to broaden the tax base while scaling up the support for the most vulnerable, restoring energy sector viability, improving institutional governance and anti-corruption effectiveness, SOE reform, building climate resilience, and creating a level playing field for private businesses to promote investment and job creation".
Also Read: In letter, PTI urges IMF to consider political stability in loan talks
Furthermore, they expressed a keen interest in completing a second economic review under the current standby arrangement, stressing the importance of discussions with the new government for this purpose.
Additionally, the IMF indicated its support for the creation of a new loan programme, stating that a new medium-term economic program would be supported if requested by the government. The spokesperson emphasized the IMF's objective of strengthening financial stability and addressing long-standing economic challenges, including the primary balance of payment issues and the restoration of sustainable growth.
The receipt of the PTI's letter underscores ongoing efforts by Pakistani authorities to engage with international financial institutions to address economic concerns and chart a path towards economic stability and growth. As discussions progress between the IMF and the new government, stakeholders will be closely monitoring developments to assess their impact on Pakistan's economic landscape.
On February 28, the PTI penned a letter to the IMF, urging the global lender to take into account the political stability of the country in any further discussions regarding financial assistance. According to Reuters, the letter outlines the critical importance of political stability in Pakistan's economic landscape.
Financial experts had suggested the PTI's letter was unlikely to have a significant impact on the market, with the IMF expected to conduct its own comprehensive analysis.
