ISLAMABAD: In its efforts to garner support for the recently announced $3 billion bailout program, the International Monetary Fund (IMF) is engaging with major political parties, including Pakistan Tehreek-e-Insaf (PTI).
The IMF team is set to meet Imran Khan today. Esther Perez Ruiz, the IMF’s resident representative, stated that these meetings aim to ensure support for the program’s key objectives. The meeting would also focus on the policies regarding the upcoming elections.
Pakistan is set to hold general elections by early November. The new bailout program, a nine-month stand-by arrangement, will be considered by the IMF’s board on July 12.
In a Twitter post, Hammad Azhar, a senior leader of the PTI and former finance minister, revealed that the IMF has reached out to the party’s economic team. The purpose of this outreach is to seek PTI’s support for the loan agreement and its broader objectives.
Hammad Azhar tweeted that an IMF team would visit party Chairman Imran Khan at Zaman Park later in the afternoon. He further stated that both the PTI’s economic team and the IMF team would participate in the discussions. Some members would attend the discussion personally while others will join through a video link.
Pakistan Pledges To Honor Its Commitments To The IMF
Previously, Prime Minister Shehbaz Sharif stated on Wednesday that Pakistan is committed to fulfilling the obligations made to the International Monetary Fund (IMF) in order to obtain a short-term financing agreement. This commitment aims to assist the financially strained nation in avoiding a potential default in the foreseeable future.
The local authorities and the International Monetary Fund team have reached a staff-level agreement on the $3 billion stand-by agreement. The executive board of the IMF is scheduled to give the final approval of this agreement on July 12.
A balance of payments crisis has adversely affected the economy, further compounded by the challenge of external debt. Additionally, months of political turmoil have discouraged foreign investment, further exacerbating the situation.
Inflation has surged, with the national currency, the rupee, hitting an all-time low against the US dollar. As a result, the country is facing significant difficulties in affording imports, leading to a sharp decline in industrial output.
