According to the IMF, Pakistan’s institutions should be the only ones to decide whether to hold elections or postpone them, and outside influences should not be allowed.
The IMF’s stance comes after talks between the lender and Pakistan over an extended fund facility (EFF) have been stalled for months, despite coming close to finalizing the package on more than one occasion.
The announcement by the IMF comes after the Election Commission of Pakistan (ECP) decided to postpone the Punjab Assembly elections by more than five months due to security and financial concerns.
According to a formal statement, the IMF programme also mandated the delay of the federal and provincial elections. According to reports, the finance secretary told the Election Commission that it would be challenging for the government to release funds for elections without failing to meet the lender’s “specific targets for the maintenance of fiscal discipline and deficit.”
Esther Perez Ruiz, the resident representative of the IMF in Islamabad, responded with a succinct but forceful statement, saying Pakistan’s institutions alone should decide on the constitutionality, viability, and timing of the provincial and general elections.
Ruiz emphasised that no requirement in Pakistan’s EFF-backed programme could obstruct the nation’s ability to carry out constitutionally mandated activities.
The policies that serve as the foundation for the ninth EFF review have advanced significantly, according to Ruiz. The IMF’s top priority, she continued, is to make sure there is enough funding to assist the authorities in carrying out their policy agenda.
A staff-level agreement will follow once the outstanding issues, including the recently revealed fuel subsidy programme by the authorities, are resolved.
The IMF’s mandate prohibits it from talking to a borrower about domestic politics or defence matters, such as Pakistan’s nuclear programme. The IMF’s position is therefore seen as a deliberate attempt to emphasise the lender’s objectivity on political issues.
The IMF, which does not want to appear to be supporting either the government or the opposition on any matter, is further alarmed by the seriousness of the situation in Pakistan right now.
Even though the IMF has emphasised its political neutrality, diplomatic sources suggest that other lenders have urged Pakistan to address important political issues, like elections, if it wants financial support.
We don’t yet know Pakistan’s response to these demands or how that will impact its dealings with the IMF and other lenders.
