IMF Delegation Meets Imran Khan ahead of Executive Board Meeting

MF Delegation Meets PTI Chairman Imran Khan Ahead of Board Meeting for $3 Billion Standby Arrangement

Days before the executive board meeting of the International Monetary Fund (IMF) to review and potentially endorse a $3 billion Standby Arrangement (SBA) for Pakistan, an IMF delegation from the global lender visited Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan in Lahore.

Seeking Support from Political Parties

The Washington-based lender is seeking the support of major political parties, including PTI, ruling Pakistan Muslim League-Nawaz (PML-N), and Pakistan Peoples Party (PPP), for the recently announced billion-dollar bailout program. These meetings with political parties aim to secure their assurances of support for the key objectives and policies under the new IMF-supported program, particularly with the approaching national elections, according to the IMF’s resident representative Esther Perez Ruiz.

IMF Executive Board Meeting

The IMF executive board is scheduled to meet on July 12 to review the Standby Arrangement for Pakistan. The country and the IMF reached a long-awaited staff-level agreement on the $3 billion SBA, which was announced by the global lender on June 30. This funding, spread over nine months, offers some relief to Pakistan, which has been grappling with a severe economic crisis, high inflation, and dwindling foreign exchange reserves.

PTI’s Welcoming Response

The PTI, the former ruling party, welcomed the Standby Arrangement as it aims to preserve macroeconomic stability by securing external financing and implementing sound policies. Hammad Azhar, a PTI leader, stated that the IMF team met with the PTI chairman at his residence, with discussions focusing on the staff-level agreement reached between the IMF and the government for the 9-month $3 billion SBA. Azhar emphasized the importance of protecting the lower-income segments of the population from high inflation and highlighted that political stability and the rule of law are crucial for Pakistan’s economic stability.

Meeting with PPP

In a significant development, the IMF delegation also held discussions with the finance team of the Pakistan Peoples Party (PPP), including Senator Saleem Mandviwala. The meeting aimed to explore the possibility of a standby agreement that would have a profound impact on Pakistan’s financial stability. The PPP expressed its willingness to support the IMF program, citing national interests as the driving force behind their decision. Federal Minister for Commerce Syed Naveed Qamar, representing the PPP finance team, emphasized the importance of the standby agreement in addressing Pakistan’s economic concerns and reiterated the PPP’s commitment to working closely with the IMF for successful program implementation.

Key Points

• The IMF delegation meets PTI Chairman Imran Khan and seeks support from major political parties, including PTI, PML-N, and PPP, for a $3 billion Standby Arrangement (SBA) for Pakistan.
• The IMF executive board is scheduled to review the SBA for Pakistan on July 12, offering some relief to the cash-strapped country facing an economic crisis and high inflation.
• PTI and PPP express support for the Standby Arrangement, emphasizing the importance of economic stability, protection of lower-income segments, and engagement with the IMF for successful implementation of the program.

Published in PakWeb, July 07, 2023.

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