The IMF has reached out to prominent political parties, notably PML-N, PPP and even PTI, to seek their assurances before the $3 billion standby agreement is approved. The global financial institution is concerned as the tenure of the current government ends next month and wants assurances that the programme will be implemented.
The rare move comes days before a meeting of the IMF executive board reviews the arrangement before the package is finalized. Pakistan was missing on the earlier schedule, raising speculation that the funds will not be released anytime soon. As the nation teetered on the brink of default and looming payments, the government made desperate last-ditch attempts to revive the deal.
The IMF said it would meet the economic teams of political parties to seek their assurances on the deal’s objectives. It is certainly the meeting with PTI chairman Imran Khan that may have irked the current government, and shows that the former prime minister remains relevant despite efforts to place him on the sidelines. The PTI has expressed support for the bailout package until the elections are held, and maintained that the next government will have the right to negotiate the deal.
The IMF is certainly counting on negotiating a new agreement with the incoming government when elections are held. As this is, hopefully, election year, the financial institution wants surety the new government will adhere to the agreement. In recent months, the IMF has clarified that it does not favour ant particular party and will negotiate with whoever forms the next government.
However, the political debate would continue whether the PTI is still considered a relevant player in the current economic and political climate. The PTI has supported the overall objectives and key policies of the IMF deal and maintained that economic stability is necessary for political stability. It said that after elections are held, the new government will be mandate to engage on long-term reforms.
It is unclear whether the government was in the loop over the IMF meetings with PTI. The government has previously reacted to a statement by IMF on political stability. It was irked when IMF want political issues settled and even election held before approving the deal. A subdued response this time around shows the government remains aware that the PTI remains a stakeholder in the agreement.
