IMF Willing to Give Pakistan New ‘Medium-Term’ Bailout Program

The International Monetary Fund (IMF) is willing to develop a new economic program for Pakistan. Should the new government request, it will support the formulation of a new medium-term economic program, IMF Resident Representative in Pakistan Esther Perez Ruiz told ProPakistani on Friday. This announcement follows a letter received by the IMF from a spokesperson of the Pakistan Tehreek-e-Insaf (PTI) party on February 28, seeking clarification on the Fund’s engagement with Pakistan under its program. Ruiz said, “The IMF, as an international institution with a narrow mandate on economic issues, does not comment on domestic political developments. However, given the importance of the institutional environment for economic stability and growth, we do encourage the fair and peaceful resolution of all electoral disputes”. She added, “In terms of our engagement with Pakistan, our aim is to support the implementation of strong policies to deepen financial stability, address the longstanding economic and underlying balance of payments challenges, and restore sustained and inclusive growth for the benefit of all Pakistani citizens”. This includes stronger public finances, through high-quality revenue measures to broaden the tax base while scaling up the support for the most vulnerable, restoring energy sector viability, improving institutional governance and anti-corruption effectiveness, SOE reform, building climate resilience, and creating a level playing field for private businesses to promote investment and job creation. “On the basis of these objectives, we look forward to engaging with the new government to complete the second review under the current Stand-by Arrangement and, should the government request, support the formulation of a new medium-term economic program,” Ruiz added.