PDM 2.0, Dilemma for the IMF

The incoming PDM 2.0 greenlights the Ministry of Finance to begin groundwork for another IMF program, signaling Pakistan’s 24th engagement with the IMF. The article discusses the challenges facing both national economic experts crafting a homegrown program and the IMF as Pakistan approaches for assistance. It delves into the IMF’s dwindling trust in elected officials, the unique political landscape, and the potential scenarios for IMF lending size and program duration. The IMF must navigate dilemmas such as program size, timeline, and the inclusion of deeper organizational reforms while considering political and economic dynamics. The article suggests various options for IMF-GOP negotiations to narrow the trust deficit, test political ownership, and pave the way for real structural reforms.