IMF programme has nothing to do with elections in Pakistan
ISLAMABAD: Decisions regarding the constitutionality, feasibility, and timing of the provincial and general elections rest solely with Pakistan’s institutions.
There is no requirement under Pakistan’s EFF-supported program which could interfere with Pakistan ability to undertake constitutional activities, IMF Resident Representative Esther Ruiz said in a short-message send to media persons.
Targets under IMF-supported programs are set at the aggregate general government level (aggregating across federal and provincial government) and within these there is fiscal space to allocate or reprioritize spending and/or raise additional revenues to ensure constitutional activities can take place as required.
Earlier, the Resident Representative of the IMF in Islamabad rejected the reports that the IMF has linked the revival of its loan programme with downsizing of nuclear assets of Pakistan.
In a statement issued to media, Esther Ruiz, the Resident Representative of the IMF in Islamabad denied attaching any strings to the External Fund Facility (EFF).
“Regarding recent speculation that programme discussions with the authorities for the ninth review under the IMF-backed programme may have covered Pakistan’s nuclear weapons programme, I want to be categoric that there is absolutely no truth to this or any insinuated link between the past or current IMF supported programme and decision by any Pakistani government over its nuclear programme,” the official said.
She also stated that that the bilateral discussions focused on economic policies to solve Pakistan’s economic and balance of payments problems. The discussion was in line with the Fund’s mandate for promoting macroeconomic and financial stability, Geo TV correspondent Ashraf Malkham reported today quoting the IMF official.
Pakistan and the IMF teams are holding direct and virtual talks since Jan 31, but despite the fact that the country has met all the IMF’s requirements, the fund is delaying resumption of loan.
Consequently, different speculations are surfacing in Pakistan about the IMF loans programme, nuclear assets of Pakistan and uncertainty about the disbursement of the next trache.
The IMF is not delaying only $1.1 billion next tranche, but it is also sitting on more than $12 billion that Pakistan will receive after the resumption of IMF loan.
Millions of Pakistan badly hit by devastating floods are still waiting for assistance promised by the donors at the United Nations moot in Paris. The donors have linked the payment with the revival of IMF loan _ perhaps this is also a reason behind abnormal delay in release of IMF loans.
The funds are part of a $6.5 billion bailout package the IMF approved in 2019, which analysts say is critical if Pakistan is to avoid defaulting on external debt obligations.
Importantly, senior politicians Senator Raza Rabbani and former foreign minister and PTI Shah Mahmood Qureshi raised concerns about the unexpected delay in the staff-level agreement (SLA) with the Fund. They also questioned the government’s stand on the nuclear assets after more than normal delay in the IMF loans.
