The former Prime Minister of Pakistan, Imran Khan, has requested the IMF to take into account the alleged rigging in the recent elections. However, economists warn that this could be dangerous for Pakistan. The IMF has stated that Pakistan’s interim government has maintained economic stability and achieved fiscal targets while protecting the social safety net. As the country prepares to swear in a new government following controversial elections, concerns have been raised about the impact of political chaos on Pakistan’s $3bn deal with the IMF, which is crucial for its economic stability.
Imran Khan, who is currently in prison, has urged the IMF to conduct an audit of the elections before proceeding with the loan deal. His lawyer stated that the IMF and other international organizations can only provide a loan to a country with good governance. Pakistan signed a standby agreement with the IMF last year, and securing a long-term plan is a priority for the next government.
The elections saw a split mandate, with PTI-backed candidates winning the highest number of seats in the National Assembly. However, allegations of manipulation and rigging have marred the results, leading to ongoing street protests and legal cases.
Despite the political uncertainty, some economists believe that the IMF’s approach will not be affected. Extending the IMF deal is critical for Pakistan, as the country faces massive economic challenges and risks default if the government fails to tackle them. Pakistan’s foreign reserves are low, its currency has lost significant value, and inflation is high. The country also has substantial debt obligations that it needs to address.
A continuation of the IMF loan program is seen as essential for Pakistan’s economy, and economists warn that the country cannot afford to let politics interfere with securing a new deal with the IMF.