Pakistan’s economic situation has been fragile for quite some time, with a persistent balance of payments issue and a large current account deficit. The country has sought assistance from the International Monetary Fund (IMF) multiple times over the years to help stabilize its economy. However, the ongoing negotiations with the IMF over a $6.5 billion bailout package approved in 2019 have sparked concerns among some Pakistani politicians.
There have been rumors that the delay in the staff-level agreement with the Fund may be related to Pakistan’s strategic assets, including its nuclear and missile programs. These concerns have been raised by some veteran politicians, who worry that the IMF may attach strings to the loan program that could compromise Pakistan’s national security.
Despite these concerns, IMF resident representative in Islamabad Esther Perez Ruiz has categorically denied any link between the loan program and Pakistan’s nuclear program. According to Ruiz, the IMF has solely focused on economic policies to help Pakistan solve its financial problems and balance of payments issues. The IMF’s main goal is to assist Pakistan in implementing a comprehensive economic reform program that will put the country on a sustainable path of growth and development.
Finance Minister Ishaq Dar has also assured the Parliament that there will be no compromise on the country’s nuclear and missile programs. He has stated that Pakistan’s strategic assets are non-negotiable, and the government is committed to ensuring their safety and security. Dar has also reiterated that the staff-level agreement and Extended Fund Facility program will be published on the finance ministry’s website once finalized.
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Pakistan’s relationship with the IMF has been a complex one over the years, with both sides often at odds over economic policies and reform programs. However, the country has come to rely on IMF assistance to stabilize its economy and address its structural economic issues. As Pakistan continues its negotiations with the IMF, it remains to be seen what kind of economic reforms will be implemented and what impact they will have on the country’s overall economic outlook.
