National elections in June-July were necessary to enter the next International Monetary Fund prorgamme for the economic stability, former finance czar Hafeez Pasha said on Tuesday.

“My personal opinion is that if possible… after a consensus is developed it is necessary to have elections in June-July,” he said at Munizae Jahangir show Spot Light.

He agreed with Munizae to a query that the government and the opposition have to be on the same page before elections on the economy.

He was responding to a query pertaining to the impact of political stability on the economy. Munizae sought Pasha’s view on former SBP governor Shahid Kardar’s comments that “the government has one choice: hold elections” to have economic stability.

Pakistan would again have to go to the International Monetary Fund, he said in reply. Pasha also made such predictions in his opinion piece for the Business Recorder on April 18, 2022.

“Pakistan needs around $30 billion on an annual basis for three years to complete its loans and current account deficit for which we have to go to the IMF once again for a three-year programme after June,” he said, “Pakistan has fulfilled all conditions for IMF’s ninth review, however, it seems that despite the arrival of $3 billion dollars, there is still a shortfall.”

Pasha went on to add that Pakistan had to follow Sri Lanka’s strategy of restructuring the loans and spreading over them (extension), especially commercial and bilateral debts. “But the problem is the budget has to be presented in June and if elections are held in October, to whom the IMF would talk?”

He added that the international lender might have to talk to the government and opposition to have an agreed prorgamme. Amidst this, he was of the view that a national election after consensus in June-July was necessary.

When asked about The Economist‘s criticism of the IMF’s dealings and the finance minister’s view that the IMF was the only avenue, Pasha said that the scale of China’s loan facility to developing countries has reached the level of IMF. According to the former finance minister, it was something new.

He added that China was making a positive role in the economy and geo-political matters, adding that Beijing has supported Islamabad recently.

He called for comprehensive debt rescheduling from China and commercial debt. “If this happens Pakistan will be able to breathe again,” Pasha said.