IMF staff meets PPP, PTI leadership

ISLAMABAD / LAHORE: Ahead of granting approval of $3 billion Stand-by Arrangement (SBA), the IMF has sought assurance of support from three mainstream political parties including PMLN, PPP and the PTI on key objectives of short-term programme.

In an unusual move, which was made public, the IMF took the initiative for seeking assurances of support for the programme and getting ownership of all political stakeholders on key conditions of nine-month programme from July to March 2024.

Earlier, such moves were kept as backdoor interactions. But, this time, the IMF’s Resident Chief Esther Perez Ruiz preferred to make it public by issuing a statement.

It can be termed an unusual move, as the Breton Wood Institutions (BWIs), such as the IMF and the World Bank, had dealt with the states, instead of political parties or individuals, in the past.

“There are unusual situation prevailing in Pakistan as the current SBA programme of nine months will be implemented within span of just nine-month period with loan size of $3 billion,” said one top official. $1 billion loan would be approved and disbursed under the PDM coalition government, another $1 billion under the caretaker setup, and the last tranche of $1 billion would be given to the upcoming government as a result of general election in the country, the official added.

So, taking all major political parties into confidence makes a sense, said the official.

The IMF’s resident chief said on Friday: “[The] IMF staff are in the process of meeting representatives of major political parties in Pakistan, including PMLN, PPP and PTI, to seek assurances of their support for the key objectives and policies under a new IMF-supported programme ahead of the approaching national elections.

“As announced, the new SBA with Pakistan is expected to be considered by the IMF Executive Board in coming days.”

The finance ministry top guns confirmed the Fund’s Executive Board is scheduled to consider approval of $3 billion SBA loan for Pakistan in July-12 meeting. But, the IMF calendar did not show Pakistan’s request for granting approval of SBA loan on its agenda so far. The IMF might amend the calendar and place Islamabad’s request for approval of the SBA on its agenda anytime ahead of the Board meeting on July 12 in Washington D.C.

The IMF’s resident chief reached Zaman Park, Lahore on Friday at 6:30pm. Former minister and PTI leader Hammad Azhar tweeted the IMF team called on party chairman Imran Khan at his residence on Friday. The meeting was attended by IMF Country Chief Nathan Porter, who joined virtually from Washington, while Resident Representative Esther Perez was physically present. The PTI team included Chairman Imran Khan, Shah Mehmood Qureshi, Hammad Azhar, Shaukat Tarin, Omer Ayub Khan, Dr Sania Nishtar, Shibli Faraz, Taimur Jhagra and Muzammil Aslam. The meeting lasted for more than an hour.

Discussions took place around the Staff Level Agreement (SLA) that the IMF reached with the Government of Pakistan for a 9-month $3 billion Stand-By Arrangement. “We support the overall objectives and key policies,” he tweeted.

“We welcome the SBA to preserve macroeconomic stability by anchoring external financing and sound policies ahead of the national elections, and until a new government is formed. We wish to stress importance of programmes to protect lower-income segments of the population from high inflation,” he added.

He said the PTI considers political stability and rule of law integral to economic stability of Pakistan. Following free, fair and timely elections, a new government mandated by the people would initiate reforms and engage on a long-term basis with multilateral institutions to further economic transformation, higher and more inclusive growth.

Later on, PTI Chairman Imran Khan also endorsed the stand-by arrangement with the IMF, saying that his party would support it till new elected government comes to power through fresh elections.

In an online address, he said 13 months ago, he started raising the same issue before the nation that wrong policies of the country might push Pakistan towards default. He said when he took up the serious issue, he was declared traitor by his opponents.

The PTI chairman also said that when the PTI was in power and Pakistan was facing threat of inclusion in ‘Black list’, the PDM leadership did not support the government over FATF issue. However, he said, in the interest of Pakistan, he had decided to endorse the agreement with the IMF.

The PTI chairman also told his supporters that facing default meant country could face serious economic troubles and inflation could increase manifold.

Meanwhile, Prime Minister Shehbaz Sharif’s Coordinator for Economy Bilal Azhar Kiani said in his statement that the IMF representative was holding meetings with leadership of main political parties. He said the IMF resident chief held a meeting with the PPP leaders on Thursday.

Kiani said the IMF resident chief held a meeting with the PTI leaders to get an assurance that they would not play any trick on the economy of Pakistan. The IMF wanted assurances that the PTI would not conspire and write any letters to the IMF later on.

Regarding a meeting with the PPP leadership, it was stated that IMF Resident Chief Esther Perez Ruiz met the PPP finance team comprising Federal Commerce Minister Naveed Qamar and Saleem Mandviwala. The meeting was held at Minister’s Enclave to discuss the loan stand-by arrangement with Pakistan, which would have a profound impact on the country’s financial stability.

The PPP expressed its willingness to support the IMF programme, citing larger national interest as the driving force behind their decision.

Naveed Qamar acknowledged the significance of the standby agreement in addressing Pakistan’s economic concerns. He reiterated PPP’s commitment to work in harmony with the IMF to ensure successful implementation of the programme.

PPP Finance Secretary Senator Salim Mandviwala told The News the IMF wanted to seek party’s views and they were told that being part of the coalition government, the PPP was committed to supporting successful implementation of the programme $3 billion SBA for Pakistan.

Commerce Minister Naveed Qamar, who is also part of the PPP’s Finance Committee, tweeted that PPP agreed to support the IMF programme in national interest.