The International Monetary Fund (IMF) has assured Pakistan that it will continue to provide assistance once a new government is formed.
In response to the political crisis, the Fund issued a statement stating that “there is no concept of suspension within the IMF programme.”
Pakistan and the IMF reached an agreement on economic policies for a three-year Extended Fund Facility in May 2019. (EFF).
Pakistan was to receive approximately $6 billion over a 39-month period under the agreement but has received less than half of that amount thus far.
The Fund will pursue policies that promote macroeconomic stability and will inquire about the new government’s intentions regarding programme engagement, the statement stressed.
The Ministry of Finance stated following the announcement that the Finance Division and the IMF were collaborating on data sharing and reform discussions as part of the Extended Fund Facility (EFF).
“There is no truth to speculation about [the IMF’s] programme being suspended. The IMF confirmed this and reiterated its commitment to Pakistan’s macroeconomic stability “added the press release.
