- Pakistan blames the IMF of “interfering” in internal affairs.
State Minister for Finance and Revenue Aisha Ghaus Pasha criticized the International Monetary Fund (IMF) on Wednesday, accusing them of interfering in Pakistan’s internal affairs.
Pasha stated that Pakistan’s actions are in accordance with the law, describing IMF Mission Chief for Pakistan Nathan Porter’s statement on the political situation in Pakistan as “remarkable”.
While the IMF typically refrains from commenting on domestic politics, Porter had expressed the hope that Pakistan would find a peaceful way forward in line with the Constitution and the rule of law.
Pasha expressed her optimism that both parties would reach a staff-level agreement before the announcement of the federal budget on June 9 for the fiscal year 2023-24. She emphasized that the delay is detrimental to both Pakistan and the IMF.
Dr. Pasha confirmed reports of Prime Minister Shehbaz Sharif contacting IMF Managing Director Kristalina Georgieva, assuring her that Pakistan would fulfill all its obligations.
On May 27, PM Shehbaz reached out to Georgieva, requesting her assistance in reviving the halted $6.5 billion facility.
According to sources, the Prime Minister urged her to intervene and facilitate the completion of the pending ninth review, which would unlock $1.1 billion in financing for the financially strained nation.
Since November, the coalition government has been negotiating with the IMF to revive its bailout program, with the financing gap posing one of the main obstacles. Approximately $2.7 billion remains to be disbursed from the $6.5 billion program, which is set to expire next month.
When asked about Pakistan’s contingency plan if it fails to convince the IMF before the program’s expiration on June 30, the Minister stated, “The Ministry of Finance is not oblivious; there is always a Plan B. However, our priority is to revive the IMF program.”
Addressing the upcoming budget, Pasha assured the public that the finance bill will aim to provide relief to the people, as it will be an “election year budget.”
Finance Minister Ishaq Dar also mentioned on Sunday that Pakistan will share its budget details with the IMF. He expressed his desire for the IMF to complete its ninth review before the budget presentation in early June, as all the required conditions had already been met.
“They have asked for some additional items, and we are prepared to provide them. They want budget details, and we will provide it to them,” Dar stated in an interview with Geo News.
Regarding the subsequent reviews, he emphasized that combining the ninth and tenth reviews of the bailout would not be favorable for Pakistan, stating, “We will not do it; we see it as unfair.”
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