Pakistan in trouble as IMF stops funding till formation of new govt

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Islamabad: Pakistan’s political crisis has now turned into a constitutional crisis. Due to this, funding given by the International Monetary Fund (IMF) to Pakistan has been stopped. 

Esther Perez Ruiz, the representative of the IMF in Islamabad, said the funds would be released after the new government was formed. At the same time, according to the report of Pakistan’s leading newspaper DAN, the program of $6 billion of the International Monetary Fund (IMF) has been stopped and there is no possibility of approval of the next tranche in the current month. A big relief package related to the scheme and reduction in energy prices has been announced.

Esther Perez Ruiz said that the IMF looks forward to continuing its support to Pakistan once the new government is formed. We will remain engaged on policies to promote macroeconomic stability. Also said there is no concept of suspension within IMF programmes.

Pakistan now has only three options

Meanwhile, Pakistan officials said there were only three options left to negotiate a consensus on the Memorandum of Financial and Economic Policies, wait for elections by July and then extend the IMF program beyond September or cancel the existing programme. and negotiate a new deal with the IMF with the new government.

Imran Khan on Sunday advised President Arif Alvi to dissolve the National Assembly (Parliament) and recommended the demand for fresh elections. The matter of unconstitutional dissolution of the National Assembly has reached the Supreme Court. The matter has come up for hearing on Monday and Tuesday.

first published:April 5, 2022, 7:09 p.m.

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