Imran Khan, leader of the Pakistan Tehreek-e-Insaf and a former prime minister, met with IMF representatives on Friday and endorsed the country’s new bailout agreement, the party announced.
The IMF has stated that it is lobbying major political parties, including the PTI, to back its new nine-month, $3 billion stand-by arrangement and associated policies in the run-up to general elections this autumn.
previous finance minister and PTI leader Hammad Azhar tweeted that the previous premier and his economic team had discussed the agreement reached between the IMF and the government at the staff level last week.
IMF officials attended the meeting at Imran’s Zaman Park home in Lahore, and Mission Chief Nathan Porter participated online, according to Azhar. “In this context, we support the overall objectives and key policies,” he said.
A leader of the Pakistan Tehreek-e-Insaf (PTI) said after the meeting that “discussions took place around the staff-level agreement that IMF has reached with the Government of Pakistan for a nine-month $3 billion standby arrangement and in this context, we support the overall objectives and key policies.”
Before this year’s national elections, which are scheduled for the autumn, and until a new government is established, “We welcome the SBA (standby arrangement) to preserve macroeconomic stability by anchoring external financing and sound policies.”
In addition, he emphasized the significance of anti-inflation policies aimed at helping those on lower incomes.
As for the importance of political and legal stability to Pakistan’s economic growth, Azhar said that the PTI shared that view.
“Following free, fair, and timely elections as per the Constitution, a new government mandated by the people will initiate reforms and engage on a longer-term basis with multilateral institutions to further economic transformation, higher, and more inclusive growth,” he said.
He also mentioned that Imran would soon be speaking on the subject.
Prior to the discussions, IMF resident representative Esther Perez Ruiz released a statement saying that the meetings were held to “seek assurances of their support for the key objectives and policies under a new IMF-supported programme ahead of the approaching national elections.”
On July 12, the board of the International Monetary Fund (IMF) will vote on whether or not to approve a new accord that will be crucial in stabilising the country’s faltering $350 billion economy.
The PTI government signed the four-year Extended Financing Facility plan in 2019, however it terminated last month. The new initiative aims to replace it.
Days before he was ousted in a legislative vote last year, the previous government diverged from agreements under a prior IMF programme, delaying the implementation of the scheme and increasing economic instability.
Early in the month of November is when the midterm elections will take place.
The current government, led by Prime Minister Shehbaz Sharif, whose term ends in August, will hand over to a caretaker administration that will oversee the elections, and a new government will take office afterward.
A plea for “free, fair, and timely” elections was made by Azhar, who represented the Pakistan Tehreek-e-Insaaf (PTI) party. He said the PTI believed political stability was crucial for the economy, and that afterward, a new government would begin reforms and participate in longer-term engagement with multilateral organisations.
Since he was deposed less than four years into a five-year term, this meeting is the most high-profile event the PTI head has attended.
