PTI urges IMF to consider Pakistan's instability in talks: sources

ISLAMABAD: Imran Khan-founded Pakistan Tehreek-e-Insaf (PTI) has asked the International Monetary Fund (IMF) to factor in the country’s political stability in any further bailout talks, two people familiar with the matter said on Wednesday.

According to international news agency Reuters, PTI has sent a letter to the IMF detailing its position, two senior sources in the party said, adding more details would be made public in due course.

The IMF has yet to receive the letter, the lender said in an email to the news agency.

Last week, the IMF declined to comment on the country’s political situation after Khan’s aides said they would urge the lender to call for an independent audit of Pakistan’s disputed Feb. 8 elections before engaging in further talks with Islamabad.

Sohail Ahmed of Karachi-based Topline securities said the letter was unlikely to have a major market impact. “The IMF will do its own due diligence,” he said.

Pakistan’s economy is struggling to stabilise after securing a $3 billion standby arrangement from the IMF last summer, with record inflation, rupee devaluation and shrinking foreign reserves.

Analysts say a new government – which Imran Khan’s opponents are expected to form – is likely to need more funds from the global lender after the standby arrangement expires in April.

Imran Khan, ousted in April 2022 in a parliament vote of confidence, was accused by opposition parties of scuttling an IMF deal under a $6 billion Extended Fund Facility days before leaving his office.

An IMF spokesperson said last week that it was focused on the completion of the standby programme but was available to support the post-election government through a new arrangement to address Pakistan’s ongoing challenges if requested.

Earlier, PTI founder Imran Khan confirmed that he had penned a letter to the global lender, urging the global lender to give the poll results a thorough once-over before cutting any new cheques for Islamabad.

Speaking to journalists at the Adiala Jail, Imran Khan raised alarms about the potential consequences of obtaining a loan under the current circumstances.

“If the country gets a loan in such a situation, then who will return it?” he questioned, expressing concerns that such a loan could lead to increase in poverty.

The PTI has faced a strong backlash over the letter’s timing as the country is embroiled in a severe economic crisis, and the upcoming government is already eying a new IMF programme.