With the constitutional crisis in the country continuing to unravel, the dissolution of the National Assembly, and the announcement of early elections, the International Monetary Fund (IMF) has assured Pakistan that it would continue its support to the country "once the new government is formed.”
"There is no concept of suspension within the IMF programme,” the Fund said in a brief statement issued in this regard.
The statement from the IMF also indicates that the seventh review has ended and the three-year Extended Fund Facility (EFF) has been put on hold for the third time since it began in May 2019.
In May 2019, Pakistan and the IMF reached a staff-level agreement on economic policies for a three-year Extended Fund Facility (EFF). Under the agreement, Pakistan was to receive about $6 billion for a period of 39 months, and so far it has received almost half it. The IMF programme was scheduled to end in September.
Amid all the political drama that took place on April 3, the authorities were concerned about the reactions of the international institutions; however, the Fund reiterated its stance that it looks to continue its support to Pakistan.
“Once a new government is formed, we will engage on policies to promote macroeconomic stability, and enquire about intentions vis-a-vis programme engagement,” the statement read.
