The significance of the recent meeting between an International Monetary Fund delegation and former prime minister Imran Khan chairman has been blown out of proportion. As Pakistan prepares for elections, it was prudent for the multilateral donor to consult the prospective stakeholders that may have a say in the next government.

The IMF acts like a bank and provides loans to troubled governments after assuring that the country would act on its advice so that it is able to service the loan provided by it. Now that the tenure of the present regime is about to end and elections are due in the next three to four months, the IMF had to engage with other players that might have a say in the next government.

IMF officials generally interact with the country’s authorities, such as government officials, central bank representatives and other stakeholders throughout this process. In some cases, they consult with the opposition as well.

An IMF delegation recently met leaders of some opposition parties to discuss the outlines of the recently concluded negotiations for a nine-month $3 billion deal. The delegation met Imran Khan at his Zaman Park residence in Lahore. Separately, it also met the PPP leadership in this regard. Some in the main opposition party touted this consultation as a sign of mistrust in the present government. The party claimed the final approval by the IMF was subject to its nod. Pakistan is not the only country where the IMF deemed it essential to consult the opposition about a proposed deal.

In 2018, the IMF staff had met with opposition leaders in Argentina to discuss the proposed economic programme amid the country’s financial crisis. In 2019, during negotiations for an IMF programme, the staff engaged with various political groups, including opposition parties in Turkey, to discuss the proposed economic reforms. During the Greek debt crisis, there were reports of IMF staff engaging with opposition parties, among other stakeholders, to discuss the proposed bailout.

The IMF recognises the importance of political stability and social cohesion for successful programme implementation. Also, it may seek input from various political actors to address concerns and gather a broader range of perspectives. This engagement can help promote ownership of the reform process and enhance the chances of success. It seems that it was in this context that the IMF consulted with three main parties of the country.

Historically, the International Monetary Fund (IMF) has engaged with various stakeholders, including opposition parties, during its negotiations with member countries. The IMF aims to ensure that its programmes are comprehensive, sustainable, and supported by a broad consensus within the country seeking assistance.

Overall, while opposition reservations can have an impact, the IMF’s decision to enter into a deal with a government is based on a comprehensive assessment of various factors, including economic stability, policy credibility and the government’s ability to implement reforms. The IMF aims to work with governments that demonstrate commitment and capacity to undertake necessary economic adjustments, regardless of opposition reservations.

It is important to note that IMF engagement with opposition parties may vary depending on the specific country, its political context and the nature of the IMF assistance being discussed. The IMF typically deals with the government authorities as the primary interlocutors, but it can also engage with other stakeholders, including opposition parties, civil society organisations and representatives from the private sector. Given the current uncertainty in Pakistan, the IMF engaged political forces outside the government. Had the PTI been in power and political instability been of the same level as now and engaged the IMF, the officials of Bretton Woods institution would likely have consulted the PML-N and the PPP.

IMF discussions usually involve a range of topics, including the country’s economic situation, policy measures and the terms and conditions of the proposed programme. Specific details vary depending on the circumstances and the country involved.

The IMF follows a structured process when engaging with member countries to develop an economic programme. The process typically includes conducting an assessment of the country’s economic and financial situation, analysing the policy measures that need to be implemented and determining the financing and conditions.

The negotiations between the IMF and a country usually involve a series of meetings, both at the technical level and at board level. These discussions aim to reach an agreement on objectives, policy measures and financing arrangements.

IMF officials provide guidance and advice based on their expertise and the institution’s mandate while taking into account the borrowing country’s circumstances and priorities.

It is important to note that the specific details of these discussions and negotiations are generally kept confidential. This is meant to ensure that both parties can engage in open and frank discussions. Once an agreement is reached, the IMF may release a public statement or make an announcement outlining the key elements of the programme. Fine details are typically not disclosed.

The writer is a senior economic reporter at The News International, Lahore