Pakistan Minister slams IMF for 'meddling in internal affairs'

Aisha Ghaus Pasha, Pakistan's Minister of State for Finance, described a statement outlining prerequisites for the release of the delayed financial assistance package from the International Monetary Fund (IMF) as an act of interference and termed it as "meddling in internal affairs".

"The finance ministry is not unprepared if an agreement is not reached with the IMF," said Pasha, "a Plan B is always in place but our preference would be to go with the IMF programme".

"Pakistan is running in accordance with the law," she stressed adding that "the statement by the IMF mission chief to Pakistan is extra-ordinary."

"Intervening in Pakistan's internal affairs is not the IMF's mandate," she furthered. "Hopefully we will reach an agreement before the new budget is presented and by June 30, the IMF programme will be completed," said Pasha.

She also noted that the budget of the new fiscal year will be the "election-year budget" and is being prepared on the basis of June 9. The minister also said that the IMF allows targeted subsidies to Pakistan.

IMF highlights Pakistan's political turmoil

In a recent development, Pakistan received a recommendation from the International Monetary Fund (IMF) to adhere to its constitutional framework in addressing political conflicts. This advice came after Pakistan Prime Minister Shehbaz Sharif reached out to the Managing Director of the IMF, Kristalina Georgieva, in a final attempt to salvage the faltering $6.5 billion bailout package and prevent a potential default.

According to Pakistan news, Prime Minister Shehbaz Sharif engaged in a conversation with Kristalina Georgieva, the Managing Director of the IMF, on Saturday. This discussion came about after the finance ministry's efforts to resolve the impasse in loan negotiations over the past four months proved unsuccessful, as reported by The Express Tribune.

Just two days following the exchange between Shehbaz Sharif and Kristalina Georgieva, the IMF's Mission Chief to Pakistan, Nathan Porter, made an uncommon statement that broadened the IMF's scope to encompass the political sphere. This development deviated from the usual financial-centric focus of the IMF.

“We take note of the recent political developments, and while we do not comment on domestic politics, we do hope that a peaceful way forward is found in line with the Constitution and rule of law.”

The issuance of this statement coincided with a series of events, including a crackdown on the Imran Khan-led PTI (Pakistan Tehreek-e-Insaf) party and its workers, reported abductions of individuals, the violation of the constitutionally mandated 90-day timeframe for holding elections in two provinces, and the trial of civilians in military courts under the Army Act. It is worth noting that the IMF typically refrains from making comments on political affairs.