ISLAMABAD: The International Monetary Fund (IMF) Monday assured Pakistan that it would continue its support to the country “once the new government is formed”
“There is no concept of suspension within the IMF programme,” the Fund said in a brief statement. The statement comes amid the ongoing political crisis in the country after the dissolution of the National Assembly and the announcement of early elections.
“Once a new government is formed, we will engage on policies to promote macroeconomic stability, and enquire about intentions vis-a-vis programme engagement,” the statement is read.
The Ministry of Finance also issued a press release stating that the Finance Divison and the IMF were engaged in data sharing and reform discussions as part of the Extended Fund Facility (EFF).
“There is no truth to speculation about suspension of the programme. IMF has confirmed the same and also clarified that it remains committed to Pakistan’s macroeconomic stability,” the statement added.
The statement also indicates that the seventh review has ended and the three-year Extended Fund Facility (EFF) has been put on hold for the third time since it began in May 2019.
In May 2019, Pakistan and the IMF reached a staff-level agreement on economic policies for a three-year Extended Fund Facility (EFF). Under the agreement, Pakistan was to receive about $6 billion for a period of 39 months and has received almost half of it so far. The IMF programme was scheduled to end in September.
The IMF expressed concerns third tax amnesty scheme introduced by the government and the scope of the Kamyab Pakistan Programme (KPP). It had also raised questions over Prime Minister Imran Khan’s relief package.
Pakistan has so far received little over $3bn out of $6bn worth of the 39-month IMF programme. The Fund earlier expressed concern over expansionary policies adopted in the 2021-22 federal budget,
