The International Monetary Fund (IMF) dealt a blow to former Prime Minister Imran Khan's bid to tie economic assistance to Pakistan with an audit of the recent general elections in the country.
Khan's Pakistan Tehreek-e-Insaf (PTI) had written to the IMF alleging election rigging and urging the global lender not to provide aid without scrutinizing the poll results.
However, the IMF rejected the request, emphasizing its focus on economic stability and growth rather than domestic political matters. In a statement, an IMF spokesperson stated, "The IMF, as an international institution with a narrow mandate on economic issues, does not comment on domestic political developments."
The spokesperson highlighted the importance of a fair and peaceful resolution of electoral disputes while reaffirming the IMF's commitment to helping Pakistan implement strong economic policies.
The IMF's engagement with Pakistan aims to address longstanding economic challenges and promote inclusive growth. The lender focuses on measures to enhance financial stability, broaden the tax base, restore energy sector viability, improve governance and anti-corruption efforts, reform state-owned enterprises, and foster climate resilience.
Additionally, the IMF looks forward to engaging with Pakistan to complete the second review under the ongoing Stand by Arrangement (SBA) and support the development of a new medium-term economic program if requested by the government.
The IMF's response came as its mission prepares to visit Pakistan following the formation of a new cabinet. The Fund stands ready to hold a mission for the second review of the Stand-by shortly after the new cabinet is formed, according to Julie Kozack, Director of the IMF Communications Department.
In their letter to IMF Managing Director Kristalina Georgieva, PTI spokesperson Raoof Hasan urged the IMF to conduct an audit of a significant portion of the national and provincial assembly seats to uncover alleged intervention and fraud during the February 8 elections before entering into further bailout talks with Pakistan.
With Pakistan facing a looming balance of payments crisis, the government is seeking a fresh loan of about USD 6 billion from the IMF to address external liabilities. Last year, Pakistan received a USD 3 billion short-term loan from the IMF, which is set to end next month.
The country's dependence on IMF financing remains crucial to meet its foreign financing needs for debt repayments and current account deficit financing.
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