KARACHI: The PTI has welcomed a short-term agreement with the International Monetary Fund, hoping that it would bring economic stability to the country “after a painful year” of Pakistan Democratic Movement’s government, but warned that any attempts to delay or sabotage the elections would create hurdles.

In a statement issued on Friday, the party claimed that the IMF’s staff report released earlier this week had acknowledged the PTI leadership’s support in paving the way for the $3 billion standby arrangement, approved by the lender’s board earlier this month.

“We welcome the IMF staff commitment to support ‘national elections in Fall 2023’ and to anchor the economy during the transition to the new government,” the PTI said.

“Free and fair elections would be crucial to reduce political uncertainty and build confidence in the economy. Any attempts to delay or sabotage the elections will create further hurdles in the way of stabilising the economy and financial support from the international development partners,” it said.

PTI welcomes $3bn deal with IMF, hopes it will bring stability ‘after a painful year’

The party claimed that the successes highlighted by the IMF report under the PTI government included making the State Bank an independent authority, introducing a market-based exchange rate, ending the flow of circular debt, expanding the social protection under the PM Ehsaas programme, and exiting from the so-called grey list of the Financial Action Task Force.

In contrast, the PTI said, the IMF report was “a charge sheet against the disastrous economic policies of the PDM regime” which led to high inflation and stalled economic growth.

“IMF estimates that GDP growth would decline 0.5pc in FY2023, against government projection of 0.3pc growth as data in recent months has ‘disappointed’ with LSM [large-scale manufacturing] activity output contracting by 9.4pc ‘amid frequent announcements of temporary plant shutdowns due to the inability to import machinery and intermediate inputs in a timely manner’,” the PTI said in the statement.

The party said its leadership saw the IMF’s latest bailout package as an opportunity to protect the weak and vulnerable citizens who “have been burdened by record-high inflation under the PDM regime”.

It added: “The gains from economic stability must be passed on to the citizens and tax policy must seek to address the weak compliance by the FBR instead of burdening existing taxpayers.”

Published in Dawn, July 22nd, 2023