IMF backs new economic programme for Pakistan

The International Monetary Fund (IMF) said it will support formulating a new economic programme for Pakistan if the country’s new government seeks one, while encouraging the fair resolution of all electoral disputes.

Pakistan grappled with an uncertain Feb. 8 election that delayed the formation of a coalition government until new Prime Minister Shehbaz Sharif was sworn in on Monday, although a new finance minister has yet to be decided.

“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,” an IMF spokesperson said in an e-mail.

Sharif has asked his government to open talks with the IMF for a new programme after clearing the stand-by arrangement.

Pakistan secured a $3 billion IMF stand-by arrangement last summer, but the country is still struggling with record inflation, currency devaluation and shrinking foreign reserves.

“If developing countries are to prosper and grapple (their) way out of debt and borrowing, the lender needs to be as responsible,” said Zulfikar Bukhari, Khan’s close aide and spokesman for his Tehreek-e-Insaf party.

After a new cabinet is formed, the IMF is ready to send a mission for the second review of the stand-by arrangement, its communications official Julie Kozack told a briefing, adding that its focus is to complete the existing programme, which ends in April.