Pakistan-IMF Talks Hang in the Balance as Political Temperature Rises

The future of ongoing talks between Pakistan and the International Monetary Fund (IMF) for its funds’ program hangs in the balance as the country is facing political turmoil with the opposition parties submitting a no-confidence motion against Prime Minister Imran Khan. The opposition parties including Pakistan Muslim League-Nawaz (PML-N), Pakistan Peoples Party (PPP), Jamiat Ulma-e-Islam (JUI-F), submitted the no-confidence motion, signed by 86 lawmakers, in the Assembly Secretariat on Tuesday. The talks with IMF, currently continuing at the technical level, are likely to get affected due to the uncertain situation. The policy level talks are scheduled to start on March 11, which will require the government to make some commitments with the IMF. The no-confidence motion has been presented at a time when talks with the global lender have commenced to review the program for the second quarter of the current fiscal year and to set targets for the third quarter. However, Finance Ministry Spokesperson Muzammil Aslam told ProPakistani that, “Talks are continuing unabated in the current situation”. The talks will not be affected due to the recent political developments in the country. He added that the talks are taking place between the IMF and the government of Pakistan, not any individual. When ProPakistani contacted IMF Country Representative Esther Perez to ask questions about the latest political development in the country amid ongoing talks, she did not respond. On the other hand, the opposition parties have continuously blamed IMF for high inflation and economic woes in the country. According to economic experts, the latest political developments have posed a threat to the ongoing talks and the overall economic indicators.