The International Monetary Fund (IMF) has said that the choice of when and whether to hold provincial and general elections “remains completely with Pakistan’s institutions.”
The international lender has clarified that there is “no requirement under Pakistan’s Extended Fund Facility-supported program that could interfere with the country’s ability to undertake constitutional activities.”
The International Monetary Fund released a statement a day after the Election Commission of Pakistan (ECP) decided to postpone the Punjab Assembly elections by more than five months due to budgetary and security concerns.
On March 9, a meeting was held at which the Ministry of Finance Secretary informed the commission that “due to the paucity of funds and financial crunch, the country is facing an unprecedented economic crisis and it is under compulsion by the IMF program, which has set targets for maintenance of fiscal discipline and deficit, and it would be difficult for [the government] to release funds now” for elections in the country.
On March 14, the Punjab chief secretary stated in a meeting that “it shall not be possible for the provincial government to fund the elections,” citing a number of financial obligations in addition to the province’s need to maintain a cash surplus of Rs413/9 billion [sic] as part of the IMF program.
Cash-strapped Pakistan must act quickly to implement the necessary steps to strike an agreement with the IMF.
The conclusion of the ninth review of a $7 billion loan program, which has been postponed since late last year due to a policy framework, would result in the payout of $1.2 billion as well as the opening of inflows from friendly nations.
Pakistan is the only South Asian country that’s yet to secure a bailout from the International Monetary Fund as Sri Lanka clinched financing this week and Bangladesh pushes on with carrying out IMF-mandated reforms.
