ISLAMABAD: The International Monetary Fund (IMF) will support the formulation of a new economic program for Pakistan if the new government pursues it, the lender’s spokesman said on Friday, supporting a fair resolution of all electoral disputes.
The cash-strapped nation grappled with an uncertain February 8 election that delayed the formation of a coalition government until new Prime Minister Shehbaz Sharif was sworn in on Monday, although a new finance minister has yet to be decided.
“We look forward to meeting with the new government to complete the second review under the current standby regime and, if requested by the government, will support the formulation of a new medium-term economic agenda,” a fund spokesman said in an email. post.
The reference was to a $3 billion standby arrangement that Pakistan secured from the IMF last summer, even as the country grapples with record inflation, currency devaluation and dwindling foreign reserves. Imprisoned former prime minister Imran Khan’s party last month asked the IMF to provide an audit of the disputed February election ahead of any further aid talks with Islamabad.
The IMF said that while it did not comment on domestic political developments, it supports a fair and peaceful resolution of all electoral disputes, given the importance of the institutional environment for economic stability and growth.
The spokesperson said that “in terms of our engagement with Pakistan, our goal is to support the implementation of strong policies to deepen financial stability, address long-term economic and balance of payments challenges, and restore sustainable and inclusive growth for the benefit of all Pakistanis. citizens”.
The statement emphasized that sustained growth can be achieved through “stronger public finances, through high-quality revenue measures to broaden the tax base while increasing support for the most vulnerable, restoring the viability of the energy sector, improving institutional governance and anti-corruption effectiveness”.
It also highlighted reforms in state-owned enterprises (SOEs), building climate resilience and creating a “level playing field for private enterprises” to support investment and employment for inclusive growth.
Based on these objectives, we look forward to working with the new government to complete the second review under the current stand-by regime and, at the government’s request, we will support the formulation of a new medium-term economic agenda.
The finance ministry and Khan’s Pakistan Tehreek-e-Insaf party did not immediately respond to a request for comment.
Sharif has asked his government to open talks with the IMF on a new program after it clears the contingency deal.
