Budget: With or without IMF?

Peek-a-boo between Pakistan and the International Monetary Fund (IMF) is almost as old as the country. Both sides appease their audience and the recent exchange of statements by the two has to be seen in this light. IMF’s Mission Chief to Pakistan Nathan Porter, responding to some questions, said: “We take note of the recent political developments, and while we do not comment on domestic politics, we do hope that a peaceful way forward is found in line with the Constitution and rule of law.” Ideally, the IMF should have avoided this statement as it does not serve any purpose, especially if getting the programme back on track is the goal. A government already under pressure on economic and political fronts was bound to respond to it. And so, it did. Overall, these statements from both sides have no meaning in terms of the Extended Fund Facility (EFF) outcomes — the ninth review was handcuffed by external financing gaps five months before these jibes were exchanged. And so it remains. This statement, however, can strengthen the already widely accepted and deep-rooted perception that the global lender is influenced by political factors while setting conditionalities and implementing programmes.