ISLAMABAD: The top International Monetary Fund (IMF) official acknowledged a lack of trust in dealing with Pakistan during the recently concluded stand-by agreement, though she said the country’s continued engagement with the lending agency was instrumental in addressing skepticism and securing a short-term $3 billion deal.
IMF Managing Director Kristalina Georgieva shared the collective sentiment of the executive board in a telephonic conversation with Prime Minister Shehbaz Sharif who thanked her for providing timely financial assistance to his country while praising her leadership and professionalism.
“The IMF board was skeptical about Pakistan’s commitment to fulfilling the conditions of the agreement due to the past trust deficit,” she was quoted as saying in an official statement circulated by the PM Office after the phone call.
However, she noted that her interaction with Sharif made it easier for her to assure the board that “Pakistan will deliver” since she realized its administration’s seriousness to deal with the economic challenges.
Faced with a major balance-of-payments crisis, former prime minister Imran Khan’s administration had entered a $6.5 billion loan program with the IMF that required Pakistan to carry out structural economic reforms which led to inflation and entailed political cost.
The IMF program remained stalled for several months after the country deviated from tough conditions imposed by the international lender, taking a considerably long negotiating period to ensure its resumption.
The prime minister reassured the IMF chief there would be no violation of the agreement.
“This government is here till August,” he said, “after which an interim government will take over.”
Sharif maintained the next government would continue to fulfill the required obligations.
He added if he was reelected, he would strengthen Pakistan’s economy with the help of the IMF and other development partners.
