KARACHI: The International Monetary Fund (IMF) can object to the release of Rs 21 billion for elections ordered by the Supreme Court of Pakistan, which can create problems for both Pakistan and the international financial institution. These views were expressed by senior economist Dr Shahid Hussain Siddiqui. Talking to the Jang, he said the State Bank of Pakistan must also seek approval from the Board of Directors before issuing funds for the election. “The SBP governor has also been involved in talks with the IMF. The IMF conditions which the government has accepted include that the budget deficit will be controlled. However, the release of funds for the election will increase the deficit, which would be against the agreement,” he explained.
He said the funds for the election were not also included in the current financial year budget. “The court order has put the SBP in a quandary. The court must review its decision. The country’s economy, which is already in trouble, will worsen if the funds are released,” he added. He said implementing the court order was important but national interests were even more vital. “The SBP governor should also talk to IMF officials and inform them about the court order. He should seek a guarantee from them that they will not stop the tranche if Rs21bn is issued for the election, because if Pakistan does not receive the tranche, it would increase risks for Pakistan,” he said, adding that the SBP governor would also have to seek approval from the board of directors for the release of the funds.
