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In an unusual move, the IMF on Tuesday urged Pakistan to resolve its political disputes in accordance with the “Constitution and the rule of law”.<\/p>\n
The remarks by the IMF’s chief of mission in Pakistan, Nathan Porter, came after Prime Minister Shehbaz Sharif reached out to the head of the Washington-based lender to revive the long-awaited 6,500 million dollars in a last-ditch effort to avoid a possible default.<\/p>\n
Cash-strapped Pakistan and the IMF have failed to reach a staff-level agreement on a much-needed $1.1 billion rescue package aimed at preventing the country from going into bankruptcy.<\/p>\n
Also Read: Pakistan to share budget details with IMF to unlock funds<\/strong><\/p>\n The funds are part of a $6.5 billion bailout package the IMF approved in 2019, which analysts say is critical if Pakistan is to avoid defaulting on external debt obligations.<\/p>\n Prime Minister Sharif and International Monetary Fund (IMF) managing director Kristalina Georgieva met on Saturday after the government could not break the deadlock, according to The Express Tribune newspaper.<\/p>\n “We take note of recent political developments and, while we do not comment on domestic politics, we hope that a peaceful way will be found in accordance with the Constitution and the rule of law,” the IMF mission chief told the Pakistan, Nathan Porter. days after Sharif met Georgieva.<\/p>\n On May 9, violent protests broke out after paramilitary Rangers arrested former Prime Minister Imran Khan from the premises of the Islamabad High Court in connection with a corruption case.<\/p>\n His Pakistan Tehreek-e-Insaf (PTI) party workers vandalized a dozen military installations, including the house of the Corps Commander in Lahore, Mianwali Airbase and the ISI building in Faisalabad in response to his arrest<\/p>\n The mob also stormed the Army Headquarters (GHQ) in Rawalpindi for the first time.<\/p>\n Thousands of Khan’s supporters were arrested in the wake of the violence, which the powerful Army described as a “dark day” in the country’s history.<\/p>\n Prime Minister Sharif said on Tuesday that his government was not ready to talk to Khan’s party because of its violent unrest across the country on May 9.<\/p>\n The IMF normally refrains from commenting on another country’s political affairs.<\/p>\n “Maintaining sound policies and securing sufficient funding from partners remain key to Pakistan maintaining macroeconomic stability,” Porter said.<\/p>\n He noted that IMF staff remain engaged with Pakistani authorities to pave the way for a board meeting before the current program expires at the end of June.<\/p>\n Porter also explained the conditions Pakistan must meet to reach an agreement with the foreign lender.<\/p>\n These include the arrangement of foreign loans, the approval of a new budget in accordance with the IMF framework and the restoration of the smooth functioning of the foreign exchange market.<\/p>\n In February this year, IMF officials and the government of Pakistan held talks, which were inconclusive.<\/p>\n Pakistan, currently in the midst of an economic crisis, is struggling with high external debt, a weak local currency and dwindling foreign exchange reserves enough to support a month’s worth of imports.<\/p>\n Pakistan’s inflation rate rose 36.4% year-on-year in April, driven mainly by food prices.<\/p>\n This is the highest in South Asia, and an increase of 35.4% in March, according to the country’s statistics office.<\/p>\n Meanwhile, the rupee was trading at Rs 285.41 in the interbank market on Monday.<\/p>\n