Bailout Talks: PTI urges IMF to consider Pakistan’s instability

The party of Pakistan's jailed former prime minister, Imran Khan, has asked the International Monetary Fund to factor in the country's political stability in any further bailout talks, two people familiar with the matter said yesterday.

Khan's Pakistan Tehreek-e-Insaf (PTI) party 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 Reuters.

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 February 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 cash-strapped economy is struggling to stabilise after securing a USD three billion standby arrangement from the IMF last summer, with record inflation, rupee devaluation and shrinking foreign reserves.

China has rolled over a USD two billion loan to Pakistan, local Geo News TV reported yesterday, citing unnamed sources in finance ministry.

The USD two billion loan was due in March and has been extended for one year, it said.

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

Khan, ousted in April 2022 in a parliament vote of confidence, was accused by opposition parties of scuttling an IMF deal under a USD six billion Extended Fund Facility days before leaving his office, a charge he denies.

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.