The IMF has sought assurance of support from three mainstream political parties including PMLN, PPP and the PTI on key objectives of short-term programme.
In a significant development for Pakistan’s economic landscape, Ester Perez Luis, the International Monetary Fund’s (IMF) resident representative, met with the finance team of the Pakistan People’s Party (PPP), including Syed Naveed Qamar, the Federal Minister for Commerce, and Saleem Mandviwala.
The meeting held here in minister’s enclave, aimed to discuss the possibility of a standby agreement with Pakistan, which would have a profound impact on the nation’s financial stability.
The PPP expressed its willingness to support the IMF program, citing larger national interests as the driving force behind their decision.
Syed Naveed Qamar, representing the party’s finance team, acknowledged the significance of the standby agreement in addressing Pakistan’s economic concerns.
He reiterated the PPP’s commitment to working in harmony with the IMF to ensure the successful implementation of the program.
Ahead of granting approval of $3 billion Stand-by Arrangement (SBA), the IMF took the initiative for seeking assurances of support for the programme and getting ownership of all political stakeholders on key conditions of nine-month programme from July to March 2024.
Earlier, such moves were kept as backdoor interactions. But, this time, the IMF’s Resident Chief Esther Perez Ruiz preferred to make it public by issuing a statement.
It can be termed an unusual move, as the Breton Wood Institutions (BWIs), such as the IMF and the World Bank, had dealt with the states, instead of political parties or individuals, in the past.
“There are unusual situation prevailing in Pakistan as the current SBA programme of nine months will be implemented within span of just nine-month period with loan size of $3 billion,” said one top official. $1 billion loan would be approved and disbursed under the PDM coalition government, another $1 billion under the caretaker setup, and the last tranche of $1 billion would be given to the upcoming government as a result of general election in the country, the official added.
So, taking all major political parties into confidence makes a sense, said the official.
The IMF’s resident chief said on Friday: “[The] IMF staff are in the process of meeting representatives of major political parties in Pakistan, including PMLN, PPP and PTI, to seek assurances of their support for the key objectives and policies under a new IMF-supported programme ahead of the approaching national elections.
“As announced, the new SBA with Pakistan is expected to be considered by the IMF Executive Board in coming days.”
The IMF’s resident chief reached Zaman Park, Lahore on Friday at 6:30pm. Former minister and PTI leader Hammad Azhar tweeted the IMF team called on party chairman Imran Khan at his residence on Friday. The meeting was attended by IMF Country Chief Nathan Porter, who joined virtually from Washington, while Resident Representative Esther Perez was physically present. The PTI team included Chairman Imran Khan, Shah Mehmood Qureshi, Hammad Azhar, Shaukat Tarin, Omer Ayub Khan, Dr Sania Nishtar, Shibli Faraz, Taimur Jhagra and Muzammil Aslam. The meeting lasted for more than an hour.
Later on, PTI Chairman Imran Khan also endorsed the stand-by arrangement with the IMF, saying that his party would support it till new elected government comes to power through fresh elections.
