IMF rejects Imran Khan’s demands, refuses to intervene in Pakistan’s electoral dispute

In another setback for jailed former Pakistan Prime Minister Imran Khan, the International Monetary Fund (IMF) has refused to intervene in Pakistan’s ongoing election row after Imran’s Pakistan Tehreek-e-Insaf (PTI) demanded the global moneylender to review the country’s February 8 elections before sanctioning any new economic package.

However, the IMF encouraged Pakistan to hold a “fair resolution” of all electoral disputes.

This comes after incarcerated former PM Imran Khan penned a letter to the IMF, urging the global lender to give the poll results a thorough once-over before cutting any new cheques for Islamabad. “If the country gets a loan in such a situation, then who will return it?” he questioned, expressing concerns that such a loan could lead to an increase in poverty.

Imran argued that without substantial investment in the country, the burden of loans on Pakistan would continue to rise, underscoring the need for political stability. Breaking its silence on the PTI’s attempt to involve the global lender in political matters, an IMF spokesperson instead showed readiness to negotiate the next medium-term programme with the newly-elected government, reported the Express Tribune.

“The IMF, as an international institution with a narrow mandate on economic issues, does not comment on domestic political developments,” said the IMF spokesperson while commenting on the letter written by the PTI, which it received on February 28. “Given the importance of the institutional environment for economic stability and growth, we do encourage the fair and peaceful resolution of all electoral disputes,” said the IMF spokesperson.

Pakistan to receive another IMF package

Notably, PTI has throughout termed the Feb 8 polls as ‘disputed’ while alleging a lack of a ‘level playing field’. The party claims to have won about 180 seats as against 92, which were notified by the Election Commission of Pakistan (ECP) as independently elected members of the National Assembly. The PTI has also claimed to have documentary evidence of rigging in the elections and demanded that the IMF should play a role in conducting the investigations.

The IMF’s current $3 billion short-term bailout package is expiring before the middle of next month and newly-re-elected Prime Minister Shehbaz Sharif has already given the go-ahead to the Finance Ministry to begin discussions for signing a new Extended Fund Facility (EFF). The last EFF had expired in June without the disbursement of the $2.6 billion loan amount due to Pakistan’s failure to meet the programme conditions.

“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 programme,” said the IMF spokesperson.

The spokesperson said that the IMF aims to support the implementation of strong policies to deepen financial stability, address long-standing economic and underlying balance of payments challenges, and restore sustained and inclusive growth for the benefit of all Pakistani citizens. The last loan tranche of $1.2 billion of the current programme remains undisbursed and the IMF is waiting for the formation of the federal cabinet before sending a mission to Pakistan.

Pakistan’s new government

Shehbaz Sharif was sworn in as the 24th PM of Pakistan on Monday, nearly a month after the country held general elections. Shehbaz was tasked by his elder brother and former three-time PM to negotiate with other like-minded parties on the formation of a coalition government. Besides the Pakistan Peoples Party (PPP), Shehbaz was backed by the Muttahida Qaumi Movement (MQM-P), Pakistan Muslim League (Q), Balochistan Awami Party, Pakistan Muslim League (Z), Istehkam-e-Pakistan Party and the National Party.

On Saturday, members of Pakistan’s national and provincial assemblies on Saturday voted in the presidential elections in which Asif Ali Zardari is set to be elected for a second time. Zardari, the 68-year-old joint candidate of PPP and Pakistan Muslim League-Nawaz (PML-N) and Sunni Ittehad Council’s candidate Mahmood Khan Achakzai, 75, are vying for the office of president.

The PML-N-led ruling coalition has calculated that its candidate Asif Ali Zardari would get more than 400 electoral votes. As many as 325 members of the National Assembly, 91 senators, 354 members of the Punjab Assembly, 157 members of the Sindh Assembly, 117 members of the Khyber Pakhtunkhwa Assembly and 65 members of the Balochistan Assembly are eligible to cast their vote.