File photo. Jim Watson—AFP
The International Monetary Fund (IMF) on Thursday clarified that any decision on whether or not to hold elections is solely the domain of Pakistan’s institutions, stressing that it only set “general targets” for fiscal discipline.
On Wednesday, the Election Commission of Pakistan (ECP) postponed elections in Punjab from April 30 to Oct. 8, citing security threats and financial difficulties. According to an official order, the electoral body said that it had been informed by the finance secretary that the lender had “set specific targets for the maintenance of fiscal discipline and deficit, and it would be difficult for the government to release funds for elections” without missing those targets.
In a statement to media responding to these claims, IMF resident representative in Islamabad Esther Ruiz Perez said decisions over the constitutionality, feasibility and timing of provincial and general elections rested solely with Pakistan’s institutions. “There is no requirement under Pakistan’s Extended Fund Facility-supported program which could interfere with Pakistan’s ability to undertake constitutional activities,” she said.
“The IMF sets aggregate general government targets (aggregating across federal and provincial government levels) and within these there is fiscal space to allocate or reprioritize spending and/or raise additional revenues to ensure constitutional activities can take place as required,” she added.
In a subsequent interaction with a Voice of America journalist, Perez clarified that the IMF and Pakistan were nearing a staff-level agreement—pending for months despite claims by government officials that a deal is “nearly” done. “At this point, ensuring there is sufficient financing to support the authorities in the implementation of their policy agenda is the paramount priority,” she said. “A staff-level agreement will follow once the few remaining points, including the authorities’ recently announced fuel subsidy scheme, are closed,” she added.
In recent months, Pakistan has taken several tough measures to revive the stalled IMF program, including increasing taxes and energy prices, and allowing its currency to weaken. However, the lender is now requiring it to provide written assurances of support from “friendly” nations, which authorities in the Finance Division is a “unique” occurrence.