IMF to continue support to Pakistan after formation of new government

Amid the ongoing constitutional crisis in the country, the dissolution of the National Assembly, and the announcement of early elections, the International Monetary Fund (IMF) Monday assured Pakistan that it would continue its support to the country “once the new government is formed.”

The statement from the IMF also indicates that the seventh review has ended and the three-year Extended Fund Facility (EFF) has been put on hold for the third time since it began in May 2019. In May 2019, Pakistan and the IMF reached a staff-level agreement on economic policies for a three-year Extended Fund Facility (EFF).

Earlier, top official sources said the IMF and the now-former PTI-led government of Pakistan had reached a deadlock amid talks for the seventh review after the Fund discovered a yawning gap between the cost and official estimates provided by Pakistani authorities for the Prime Minister Imran Khan’s relief package and Kamyab Pakistan Programme (KPP).

Meanwhile, on the eve of voting on the no-confidence motion, former PML-N finance minister Miftah Ismail shared in an exclusive interview with The News that after PM Imran Khan is ousted from his office, the first thing the newly-formed government will do was to renegotiate with the IMF, convincing them to release remaining amount of the $6 billion loan tranche within a period of next six months.