Finance and Revenue Minister Senator Ishaq Dar on Monday blamed “technical reasons” behind the delay in reviving the stalled International Monetary Fund (IMF) programme, claiming that the loan was linked to the country’s nuclear programme. No strings attached.
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 politician Senator Raza Rabbani 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 its nuclear and missile programs.
In response to Rabbani’s concerns, Dar said on the Senate floor that the coalition government would not compromise on its nuclear program to revive the stalled IMF loan facility.
But it fueled further speculations and Pakistan Tehreek-e-Insaf (PTI) vice-chairman and former foreign minister Shah Mehmood Qureshi also sought an explanation from the government.
Responding to a query, IMF Resident Representative in Islamabad Esther Perez Ruiz refuted the claims and denied any link with the External Fund Facility (EFF).
“I want to say categorically that there is absolutely no truth between this or any past or present IMF-supported program and any Pakistani government’s decision on its nuclear program,” the official said. “
In a statement today, the minister said his comments on the Senate floor were in response to a specific question from a fellow senator, in which he asserted that Pakistan had a sovereign right to develop its nuclear programme. is, because it is “best without our national interests. No external dictation”.
Finance Minister Senator Mohammad Ishaq Dar’s statement on the Floor of the Senate of Pakistan on Pakistan’s Nuclear Program pic.twitter.com/83P8y5vyV2
— Ministry of Finance (@FinMinistryPak) March 20, 2023
“…which should not be linked in any way to the ongoing negotiations with the IMF,” the finance minister – who took office in September last year – said.
Fin Mandar clarified that neither the IMF nor any other country has imposed any conditions regarding Pakistan’s nuclear capability and has not made any demands from Pakistan.
The finance minister added that the delay in the IMF staff level agreement is purely due to technical reasons, due to which we are in constant communication with the IMF to finalize it at the earliest.
