ISLAMABAD: The International Monetary Fund (IMF) has rejected claims that the multilateral lender has agreed to revive a bailout that has been stalled for months despite weeks of talks between the two sides on a nuclear programme. The wire was also attached.
The lender has yet to approve the release of $1.1 billion that was originally supposed to be disbursed in November last year, leaving Pakistan with only enough foreign exchange reserves to cover one month’s worth of imports.
Pakistan has been hosting an IMF mission since early February to negotiate the terms of the deal, which includes adopting policy measures to manage its fiscal deficit ahead of the annual budget around June.
The funds are part of a $6.5 billion bailout package approved by the IMF in 2019, which analysts say is crucial if Pakistan is to avoid debt obligations.
Veteran politicians Senator Raza Rabbani and former foreign minister Shah Mehmood Qureshi had raised concerns about whether the delay in the staff-level agreement with the fund had anything to do with the country’s strategic assets, including the nuclear and missile programs.
He has sought an explanation from the government on this matter.
In a statement issued to the media on Sunday, IMF Resident Representative in Islamabad Esther Perez Ruiz denied any involvement with the External Fund Facility (EFF).
“I want to be clear about recent speculation that discussions with officials for the Ninth Review under the IMF-supported program may have covered Pakistan’s nuclear weapons program. There is absolutely no truth or clear connection between the past and the present. The IMF supported any program and decision of the Pakistani government regarding its nuclear program.
The IMF chief added that the discussions focused exclusively on economic policies to address Pakistan’s economic and balance of payments problems, which the fund would use to promote macroeconomic and financial stability. According to the mandate of
‘No compromise on nuclear, missile programme’
On Thursday, Finance Minister Ishaq Dar promised that there would be no compromise on the country’s nuclear and missile programmes.
The finance minister made this statement in response to Senator Raza Rabbani’s question in the Senate regarding the delay in the agreement with the IMF.
Rabbani lamented that the upper house of parliament “was not taken into confidence before or today as to what the conditions of the IMF are” for extending the loan facility to Pakistan.
He described the delay as “absolutely unusual, unusual”, saying: “The question arises if this delay is being done because of any pressure on Pakistan’s nuclear programme.”
In response to this, Ishaq Dar categorically said in a special meeting that there will be no compromise on the nuclear and missile program of the country.
“I can assure you that nobody will compromise on Pakistan’s nuclear or missile program,” he added.
The Minister promised that after finalizing the Staff Level Agreement and EFFP (Extension Fund Facility Programme) it will be put on the website of the Ministry of Finance.
He clarified that Pakistan has no right to say how many missiles it has and which nuclear weapons it has.
He said that we have to keep our own deterrence because we represent the people of Pakistan and we have to protect our national interests.
