In response to a letter from a Pakistan Tehreek-e-Insaf (PTI) spokesperson regarding the International Monetary Fund’s (IMF) engagement with Pakistan, the IMF spokesperson in Pakistan emphasized the organization’s role as an international institution with a narrow mandate on economic issues.
The IMF spokesperson stated that the organization refrains from commenting on domestic political developments, including the details of the letter by the PTI leader. However, the spokesperson emphasized the IMF’s encouragement for the fair and peaceful resolution of all electoral disputes. This reflects the IMF’s stance of non-interference in political matters while expressing a general commitment to the democratic and peaceful resolution of political issues within member countries.
Meanwhile, during a scheduled press briefing, IMF Communication Director Julie Kozack stated that the IMF would send its team for the second review of the Stand-By Agreement (SBA) as soon as the new cabinet is formed.
Kozack commended the caretaker government for maintaining economic stability through adherence to fiscal targets, social safety nets, a tight monetary policy stance, and building foreign exchange reserves.
A total of $1.9 billion has already been disbursed to Pakistan under the SBA, but the final tranche depends on the second review. The IMF stands ready to hold a mission for the review after the new cabinet is formed, expressing a commitment to working with the government on policies to ensure macroeconomic stability.
While Kozack declined to comment on questions related to political instability, she reiterated the IMF’s focus on collaborating with the new government to achieve macroeconomic stability and address economic challenges.
The IMF aims to support strong policies for financial stability, addressing balance of payments challenges, and restoring sustained and inclusive growth. The organization looks forward to engaging with the new government to complete the second review under the current SBA and, if requested, support the formulation of a new medium-term economic program.
