By Staff Reporter
ISLAMABAD: A team from the International Monetary Fund (IMF) met with Pakistan Tehreek-e-Insaf leader Imran Khan at his Lahore residence on Friday, seeking his backing for a $3 billion loan program that aims to stabilize the economy ahead of national elections.
The IMF reached a staff-level agreement with the government of Pakistan on June 29 for a nine-month standby arrangement that would provide much-needed external financing and anchor sound policies. The deal is subject to approval by the IMF’s executive board, which is expected to meet on July 12.
The IMF team, led by mission chief Nathan Porter, who joined virtually from Washington, and resident representative Esther Perez Ruiz, who visited Khan’s residence, discussed the key objectives and policies of the new program with the PTI chief and his senior party members, according to a statement from PTI leader and former finance minister Hammad Azhar.
“We support the overall objectives and key policies,” Azhar said. “We welcome the SBA to preserve macroeconomic stability by anchoring external financing and sound policies ahead of the national elections due in the fall of this year and until a new government is formed.”
Khan, who is widely seen as a frontrunner in the upcoming polls, also endorsed the standby arrangement in a video address later on Friday.
He said his party agreed to back the deal until the elections were held and a new government was formed, citing the risk of default and hyperinflation that the country was facing.
“Obviously, when a new government comes, they will hold talks with the IMF according to their own program,” Khan said.
Khan, however, faced criticism from the government for allegedly violating the terms of the previous agreement and pushing the country to the brink of default.
The IMF team has also been meeting with representatives of other major political parties, including the ruling Pakistan Muslim League-Nawaz and its coalition partner Pakistan Peoples Party, to seek their support for the new program.
Pakistan has been struggling with a severe balance of payments crisis and declining foreign exchange reserves amid weak growth and high inflation. The country has received multiple loans from China, Saudi Arabia and other allies to shore up its finances.
The new IMF program is expected to help Pakistan address its external vulnerabilities, strengthen fiscal discipline, improve governance and transparency, and boost social spending to protect the poor.
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