IMF's ultimatum to Pakistan: Solve political disputes before negotiating bailout

Amid the political turmoil that has engulfed Pakistan, International Monetary Fund asked the country's government to resolve its political disputes before they sit at the negotiation table. The international lender told the cash-crunched Pakistan administration to settle the dispute in line with the ‘Constitution and rule of law”, The Express Tribune reported. The news came after Pakistan Prime Minister Shehbaz Sharif met with IMF Managing Directory Kristalina Georgieva to revive the $6.5 billion bailout package which has been derailed for a while. The meeting between the two took place on Saturday after the Finance Ministry failed to break the deadlock which has persisted for the last four months. 

“We take note of the recent political developments, and while we do not comment on domestic politics, we do hope that a peaceful way forward is found in line with the Constitution and rule of law,” IMF Mission Chief to Pakistan Nathan Porter stated two days after the meeting with Sharif and Georgieva. “Sustaining strong policies and obtaining sufficient financing from partners remain key for Pakistan to maintain macroeconomic stability,” Porter added, as per the report by The Express Tribune. Porter also listed the conditions that Pakistan has to meet before both parties reach an agreement. These conditions include arranging foreign loans, approval of a new budget in line with the IMF framework, and restoration of the foreign exchange market’s proper functioning, The Express Tribune reported. 

#LIVE | 'Resolve internal dispute in line with rule of law,' IMF puts Pakistan on notice. Major General Sanjay SOI (Retd), Defence Expert speaks to Republic on the same.#IMF #Pakistan #CashStrappedPakistan #PakistanNews pic.twitter.com/1M5l81idFO

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With the economic crisis and political instability, Pakistan crippled by major setbacks 

For the longest time, the Shehbaz Sharif administration has been struggling to secure a bailout from the IMF. The country has been witnessing one of the major economic crises in its history. While the inflation rate is skyrocketing, the country’s government is running out of Federal reserves. In the midst of the economic crisis, the country is also grappling with major political turmoil. The tussle between former Prime Minister Imran Khan and the country’s current ruling regime has made Pakistan burn like never before. 

The statement by Porter came on the heels of an ongoing crackdown against PTI workers after the arrest of  PTI chairman Imran Khan. The country is also struggling with the breach of the 90-day constitutional limit to hold elections in Punjab and Khyber Pakhtunkhwa. Meanwhile, the meeting between Sharif and Georgieva came a day before Finance Minister Ishaq Dar criticised the global lender. “We are at a point where it would be extremely biased and shameful for them [IMF] if the 9th review doesn’t take place now,” Dar told reporters, The Express Tribune reported.