ISLAMABAD: As Prime Minister Shehbaz Sharif contacted Managing Director Kristalina Georgieva to revive the derailed $6.5 billion bailout package ostensibly in a last-ditch effort to avoid default, the International Monetary Fund (IMF) urged Pakistan to adhere to the Constitution in order to settle its political disputes.
The discussion between Shehbaz and Georgieva took place on Saturday after the finance ministry could not break the deadlock over the loan talks during the past four months, The Express Tribune reported on Tuesday quoting official sources.
Two days after the highest-level contact was established between Shehbaz and Georgieva, IMF Mission Chief to Pakistan Nathan Porter gave an unusual statement, expanding the IMF’s focus to the political arena.
“We take note of the recent political developments, and while we do not comment on domestic politics, we do hope that a peaceful way forward is found in line with the Constitution and rule of law.”
The announcement followed a continuous crackdown on PTI employees, kidnappings, the violation of the 90-day constitutional deadline for holding elections in the two provinces, and the prosecution of civilians in military courts under the Army Act. Typically, the IMF stays silent on political issues.
The sources said that the prime minister saw the IMF as the last resort to avoid a default and that was why he decided to intervene. After the conversation with the IMF chief, the prime minister instructed the finance ministry to share details of the next budget with the IMF.
It should be noted that the IMF had asked Pakistan to arrange the $6 billion fresh loans to bridge the financing gap till June this year but so far the government has obtained assurances for $3 billion from Saudi Arabia and the United Arab Emirates (UAE).
Dar said that the understating was that Pakistan would arrange $3 billion before the staff-level agreement and the remaining $3 billion after the agreement. He added that Pakistan was ready to share the details of the budget and the foreign exchange policy with the IMF.
