Islamabad: Amid the deadlock over securing a bailout from the International Monetary Fund (IMF), Prime Minister Shehbaz Sharif has informed the fund’s managing director Kristalina Georgieva of Pakistan’s intention to seek a fresh bailout.
Additionally, Minister of State for Finance and Revenue Dr. Ayesha Ghos Pasha on Wednesday criticized IMF mission chief Nathan Porter’s comments on the country’s political situation, saying he should not “interfere politically in the country’s affairs”. Should.
Sources told The Express Tribune that the prime minister had revealed Pakistan’s intentions to sign the follow-up bailout package during his telephonic conversation with the IMF managing director over the weekend.
Pakistan’s current $6.5 billion program has derailed and efforts to revive it over the past seven months have failed to materialize. This program ends on June 30.
Sources said the IMF chief responded to the prime minister’s views on the need for another package. The diplomatic corps and international financial institutions believe that Pakistan cannot avoid default without securing a new IMF package.
Pakistan will have to get the umbrella of the IMF to repay the debt of 25 billion dollars in the next financial year. A senior finance ministry official said on condition of anonymity that the finance ministry also believes that a follow-up program is needed to reinforce and build on the reforms initiated during the current programme.
However, the prime minister’s latest push for a new deal is against the stance of Finance Minister Ishaq Dar, who had recently floated the idea that Pakistan should quit the IMF. But, few members of the economic team believe that the IMF program is a necessity at this time.
Sources said the IMF managing director stressed that Pakistan must immediately meet outstanding conditions, particularly the settlement of foreign debt and the end of administrative controls to market exchange rates. It should be left to the forces.
IMF Mission Chief in Pakistan Nathan Porter also reiterated these views in a statement in which he stressed that Pakistan should present its budget for the next fiscal year in accordance with the IMF framework and rate. The exchange policy should also be clear.
Minister of State
“First, we want to bring the current program to an end, only after that we will talk about going beyond that point,” Dr. Ayesha Pasha, Minister of State for Finance, said after attending a meeting. Answering the question, he said. Parliamentary Committee
The Prime Minister had called on the Managing Director of the IMF to seek his intervention to revive the programme, particularly the completion of the pending 9th review before the program expires by the end of June.
The government’s constitutional term is also set to expire on August 12 and it remains to be seen whether it or the interim government will open talks with the IMF for a new program.
Dr. Pasha criticized the IMF’s interference in Pakistan’s internal affairs. In response to a question, the Minister of State said that Nathan Porter should not interfere in the political and domestic affairs of Pakistan. He called Porter’s statements on political issues “extraordinary.”
“This is an unusual thing, because we (the government) are pro-democracy. We want all institutions to work within the parameters of the constitution and proceed according to the rule of law.
His response came in response to a statement from Nathan Porter, who said Monday that “we note recent political developments, and while we do not comment on domestic politics, we hope that there is a way forward.” A peaceful way will be found. Constitution and rule of law”.
Talking to the media, Dr. Pasha said that the government has not received any “official communication” from the IMF regarding its observations on Pakistan’s political affairs. But he said the multilateral lender “does not make statements where they talk about the political affairs of a country”.
Dr. Pasha added that the government remained engaged with the IMF at the technical level, and he noted the progress in this regard.
Responding to a question whether Ishaq Dar was happy with the Prime Minister’s decision to initiate a telephonic call with the IMF chief, Dr. Pasha said that the entire economic team had referred the IMF managing director to initiate the call. is on board and added that the Prime Minister represented Pakistan.
Dr. Pasha said that the Prime Minister speaks on behalf of the entire government and he clearly said that Pakistan wants to complete the ongoing programme.
In response to another question, Dr. Pasha said that Pakistan has shared the budget data and IMF has discussed with the State Bank on opening of letter of credit for imports.
Sources said the finance ministry shared the figures already reported and proposed a 52 per cent increase over this year’s approved budget. The Finance Ministry has proposed a budget of around Rs 14.6 trillion for the next financial year with a federal budget deficit of around Rs 7.8 trillion.
Dr. Pasha said that there is no possibility of further expansion in the current program. Talking about the PMMD call, Dr. Pasha said that “the government has conveyed to the IMF that continued delay in reviving the program is not in the interest of Pakistan and the IMF”. He said that uncertainty needs to end.
We have made it clear to the IMF Managing Director (Kristalina Georgieva) that the government wants to complete the programme. The head of the IMF has also said that she wants to see progress.
