An IMF spokesperson underscored last week that while the focus remains on completing the standby program, the IMF stands prepared to assist the post-election government through a new arrangement to address Pakistan's persisting challenges upon request.
ISLAMABAD: (UrduPoint/Pakistan Point News-Feb 28th, 2024) The Pakistan Tehreek-e-Insaf (PTI) urged the International Monetary Fund (IMF) to consider the nation's political stability in any forthcoming bailout discussions, Reuters reported on Wednesday.
The two senior figures within Imran Khan's Pakistan Tehreek-e-Insaf (PTI) party, it reported, a formal letter was dispatched to the IMF outlining the party's stance.
Further details regarding this communication would be disclosed in the near future, they added.
Responding to the inquiries, the IMF stated via email to Reuters that they had not yet received the aforementioned letter.
Previously, when Khan's aides indicated their intention to implore the IMF to advocate for an independent audit of Pakistan's contested February 8 elections before resuming negotiations with Islamabad, the IMF refrained from commenting on the country's political climate.
Sohail Ahmed, an analyst at Karachi-based Topline Securities, downplayed the potential market impact of the letter, emphasizing that the IMF would conduct its own thorough assessments.
Pakistan's economy, grappling with financial strain, has been endeavoring to stabilize following the acquisition of a $3 billion standby arrangement from the IMF last summer. The nation faces daunting challenges, including soaring inflation, Currency devaluation, and dwindling foreign reserves.
In a recent development reported by local Geo news tv, China has extended a $2 billion loan to Pakistan, which was originally due in March. The loan extension, granted for one year, offers a respite amidst the country's financial constraints.
Analysts speculate that a new government, likely to be formed by Khan's adversaries, may require additional financial assistance from international lenders once the current standby arrangement concludes in April.
Khan, ousted in April 2022 through a parliamentary vote of confidence, has been accused by opposition parties of sabotaging an IMF deal under a $6 billion Extended Fund Facility shortly before vacating his position—an allegation he vehemently refutes.
An IMF spokesperson underscored last week that while the focus remains on completing the standby program, the IMF stands prepared to assist the post-election government through a new arrangement to address Pakistan's persisting challenges upon request.
