Islamabad: The International Monetary Fund (IMF) Monday assured Pakistanthat it would continue supporting the country “once the new government isformed.”
The recent statement follows the ongoing constitutional crisis in thecountry, the dissolution of the National Assembly, and the announcement ofearly elections.
“There is no concept of suspension within the IMF programme,” the Fund saidin a brief statement issued in this regard.
The statement from the IMF also indicates that the seventh review has endedand the three-year Extended Fund Facility (EFF) has been put on hold forthe third time since it began in May 2019.
In May 2019, Pakistan and the IMF reached a staff-level agreement oneconomic policies for a three-year Extended Fund Facility (EFF).
Under the agreement, Pakistan was to receive about $6 billion for a periodof 39 months, and so far it has received almost half it.
The IMF programme was scheduled to end in September.
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“Once a new government is formed, we will engage on policies to promotemacroeconomic stability, and enquire about intentions vis-a-vis programmeengagement,” the statement is read.
The Ministry of Finance also issued a press release stating the FinanceDivison and the IMF were engaged in data sharing and reform discussions aspart of the Extended Fund Facility (EFF).
“There is no truth to speculation about [the] suspension of [the IMF]programme. IMF has confirmed the same and also clarified that it remainscommitted to Pakistan’s macroeconomic stability,” the press release added.
The IMF had expressed its reservations over the government’s recentlyannounced amnesty scheme and shared doubts over the financial impact andfinancing sources of the prime minister’s relief package on electricity andpetroleum prices.
