- Sunday, April 28, 2024
Pakistan is heavily dependent on the IMF and currently implementing a short-term $3 billion agreement.
By: Shubham Ghosh
IMRAN Khan, the incarcerated former prime minister of Pakistan, on Thursday (22) revealed his intention to communicate with the International Monetary Fund (IMF), urging the global financial institution to suspend its assistance to the financially struggling nation until an “audit” of the contentious elections, marred by allegations of vote tampering, is conducted.
The statement by the cricketer-turned-politician, originating from his confinement in Adiala Jail in Rawalpindi where he has been held since last year, was relayed by Barrister Ali Zafar following a meeting.
“A letter will be written to the International Monetary Fund that it should first seek an audit of elections and then decide about any loan to Pakistan,” Zafar said, adding that any loan to Pakistan without an audit of votes would be harmful to the country facing financial woes.
Zafar, who has also been nominated by Khan to contest intra-party election for the chairman’s post, also said that the IMF has laws which bar aid to countries not having democratic governments.
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He said a democratic government was only possible after having fair and free elections. He rejected the impression that the letter would further jeopardise Pakistan’s fragile economy which, without assistance from the donors, may default on external liabilities.
Pakistan is heavily dependent on the IMF and currently implementing a short-term $3 billion (£2.37 billion) agreement. The global lender has already provided two tranches of loan and the last tranche of $1.2 (£951.2 million) is expected by the end of March or early April.
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According to experts, the new government after taking office would have to enter into fresh talks with the IMF to get a new loan.
The statement by Khan drew criticism from his opponents, who said that the former prime minister was bent on damaging the country. Pakistan Muslim League-Nawaz (PML-N) leader Atta Tarar condemned the statement about writing a letter to the IMF and said that the Pakistan Tehreek-e-Insaf (PTI) leader was trying to harm the country.
“The party has always tried to damage the country to save its politics,” he said.
PML-N, PPP to share power
The development comes after the PML-N and the Pakistan Peoples Party (PPP) agreed on a power-sharing deal to form a coalition government led by former prime minister Shehbaz Sharif. No political party managed to secure enough seats in the National Assembly following the February 8 general elections, leading to a hung parliament.
Both the PML-N and the PPP won fewer seats in parliament than candidates backed by Khan in an election mired in controversies, including vote rigging. Khan, who could not contest the elections due to his convictions in some cases including that of corruption, has been barred from holding any public office for 10 years.
The PTI has said that the PML-N and PPP are trying to form a government with a stolen mandate and the nation would not accept the “PDM 2.0”. It alleged the “regime change conspiracy” was backed by the chief election commissioner by making a mockery of the Constitution and law in the country.
The IMF’s review mission might visit Islamabad by the end of this month or early next month, provided the government formation at the federal and provincial levels is complete. The mission will finalise the salient features of the anticipated medium-term bailout package to avert a default on repayment of foreign debts.
Earlier, the IMF’s review mission was scheduled to visit the country in the first week of February, but the delegation refused to visit on the eve of the general elections. After the general elections threw a fractured mandate, doubts have been raised about the fairness of the whole process, with the US, the European Union, and other countries demanding an investigation into the irregularities and fraud allegations.
Pakistan’s foreign exchange reserves hovered around $8.04 billion (£6.37 billion) during the week ending February 2, after witnessing a decline in reserves by $173 million (£137.1 million) due to external debt repayments.
(With PTI inputs)
