Pakistan Tehreek-e-Insaf (PTI) penned a letter to the International Monetary Fund (IMF), urging the global lender to take into account the political stability of the country in any further discussions regarding financial assistance.
According to Reuters, the letter addressed to the IMF outlines the critical importance of political stability in Pakistan’s economic landscape.
While specific details of the correspondence remain undisclosed, senior officials assure that more information will be disclosed in due course.
This development follows a recent series of events wherein Khan’s aides expressed intentions to press the IMF for an independent audit of Pakistan’s contentious February 8 elections before resuming negotiations with Islamabad.
Financial experts suggest that the PTI’s letter is unlikely to have a significant impact on the market, with the IMF expected to conduct its own comprehensive analysis.
Pakistan’s economy continues to grapple with challenges such as rampant inflation, currency devaluation, and dwindling foreign reserves, despite securing a $3 billion standby arrangement from the IMF last summer.
On February 24, the IMF refused to comment on Pakistan Tehreek-e-Insaf’s (PTI) founder Imran Khan’s letter asking for an audit of the recently held General Elections and expressed willingness to work with the new Pakistani government.
“I’m not going to comment on ongoing political developments, so, I don’t have anything else to add to what I just said “ Julie Kozack, Director of Communications at the IMF said during a press briefing in response to a query in response to the PTI founding chairman’s decision to write a letter to the Fund to call for an audit of the February 8 election before it continues talks with Islamabad for a new loan programme.
Earlier today, China has extended a vital lifeline to its ally by agreeing to roll over a $2 billion debt.
Sources privy to the matter said that initially, China had reportedly sought an increase in interest rates on the debt.
However, after negotiations, an agreement was reached to maintain the existing terms. Pakistan, grappling with a surge in interest costs due to its policy of maintaining foreign exchange reserves through deposits, found relief in this decision.
The debt, maturing in the week of Pakistan Day, March 23, posed a significant challenge to the country’s already strained finances. The rollover of this loan is expected to ease pressure on the State Bank of Pakistan’s depleting foreign reserves, currently standing at $8 billion.
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