PTI Urges IMF to Consider Pakistan’s Political Stability in Bailout Talks
The Pakistan Tehreek-e-Insaf (PTI), led by incarcerated former Prime Minister Imran Khan, has made a bold move, asking the International Monetary Fund (IMF) to factor in the country’s political stability in any future bailout negotiations. This development underscores the party’s determination to address governance issues amid ongoing economic challenges.
According to sources familiar with the matter, the PTI has officially communicated its stance to the IMF through a letter outlining its position on the matter. While details of the letter remain undisclosed, the PTI has signaled its intention to prioritize political stability as a key consideration in future discussions with the IMF.
The IMF, however, has yet to receive the letter, as confirmed in an email response to Reuters. This move comes after Imran Khan, the founder of PTI, announced plans to write a letter to the IMF, urging the organization to call for an audit of the February 8 elections before resuming talks with Islamabad.
Imran Khan’s counsel, Barrister Ali Zafar, emphasized the importance of good governance in accordance with the charters of international organizations such as the IMF and the EU. He highlighted Imran Khan’s intention to address concerns over the electoral process by advocating for an independent audit of contested constituencies.
Despite the PTI’s efforts to influence IMF negotiations, analysts believe that the impact on the market is likely to be minimal. Sohail Ahmed of Karachi-based Topline Securities noted that the IMF would conduct its own due diligence, suggesting that the letter may not significantly alter the organization’s decision-making process.
Pakistan’s economic challenges have been exacerbated by inflation, currency devaluation, and dwindling foreign reserves. While the country secured a $3 billion standby arrangement from the IMF last summer, its financial woes persist, prompting efforts to seek additional support from international partners.
China recently extended a $2 billion loan to Pakistan, providing temporary relief to the cash-strapped economy. However, analysts anticipate that a new government, expected to be formed by PTI’s opponents, may require further assistance from the IMF once the current standby arrangement expires in April.
Imran Khan’s tenure, marked by political turbulence, culminated in his ousting in April 2022 following a parliamentary vote of confidence. Despite allegations of sabotaging an IMF deal, Imran Khan remains steadfast in denying any wrongdoing.
While the IMF remains focused on completing the existing standby program, it stands ready to support Pakistan’s ongoing challenges under a new arrangement, contingent upon the government’s request for assistance following the recent elections.
