KARACHI: The International Monetary Fund (IMF) said on Thursday it would not comment on “ongoing political developments” in Pakistan after lawyers for former Prime Minister Imran Khan said he would write to the global lender urging it to call for an independent audit of controversial Feb. 8 national elections before continuing bailout talks with Islamabad.
Pakistan averted default last summer due to a short-term IMF bailout, but the program expires next month and a new government will have to negotiate a long-term arrangement to keep the $350-billion economy stable.
Ahead of the bailout, the South Asian nation had to undertake a slew of measures demanded by the IMF, including revising its budget, a hike in its benchmark interest rate, and increases in electricity and natural gas prices.
Pakistan’s vulnerable external position means that securing financing from multilateral and bilateral partners will be one of the most urgent issues facing the next government, ratings agency Fitch said on Monday.
“I’m not going to comment on ongoing political developments. So, I don’t have anything else to add to what I just said,” IMF Spokesperson Julie Kozack told reporters when asked to respond to reports of Khan’s letter.
“We look forward to working with the new government on policies to ensure macroeconomic stability and prosperity for all of Pakistan’s citizens.”
On Thursday, Bloomberg reported that Pakistan planned to seek a new loan of at least $6 billion from the International Monetary Fund to help the incoming government repay billions in debt due this year.
The country would seek to negotiate an Extended Fund Facility with the IMF, the report said, and talks with the global lender were expected to start in March or April.