Senator Ishaq Dar, Minister of Finance and Revenue, blamed “technical reasons” for the delay in restarting the stalled International Monetary Fund (IMF) programme, claiming that no strings were attached to the loan regarding the country’s nuclear programme.
Since early February, Pakistan has been hosting an IMF mission to negotiate the terms of the agreement, including the adoption of policy measures to manage the fiscal deficit ahead of the annual budget, which is due in June.
The funds are part of a $6.5 billion bailout package approved by the IMF in 2019, which analysts believe is critical if Pakistan is to avoid defaulting on its external debt obligations.
Senator Raza Rabbani, a veteran politician, has expressed concern about whether the delay in the staff-level agreement with the Fund has anything to do with the country’s strategic assets, which include the nuclear and missile programmes.
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In response to Rabbani’s concerns, Dar stated on the Senate floor that the coalition government would not compromise its nuclear programme in order to restart the stalled IMF loan facility.
However, this sparked further speculation, and Pakistan Tehreek-e-Insaf (PTI) Vice Chairman and former Foreign Minister Shah Mahmood Qureshi demanded an explanation from the government as well.
In response to a query, IMF resident representative in Islamabad Esther Perez Ruiz rubbished claims and denied attaching any strings to the External Fund Facility (EFF).
“I want to be categoric that there is absolutely no truth to this or any insinuated link between the past or current IMF-supported programme and decision by any Pakistani government over its nuclear programme,” the official said.
In a statement today, the minister said his comments on the Senate’s floor were in response to a colleague senator’s specific question, wherein, he emphasised that Pakistan has a sovereign right to develop its nuclear program, as it best suits “our national interests, without any external dictation”.
“…which, by no means should in any way whatsoever be linked with the ongoing negotiations with the IMF,” the finance minister — who assumed office in September last year — said.
FinMin Dar clarified that neither IMF nor any other country has attached any conditionality or made any demand from Pakistan with regard to the nation’s nuclear capability.
The finance minister added that the delay in IMF staff-level agreement is purely due to technical reasons, for “which we are continuously engaged with the IMF in order to conclude it at the earliest”.
