As the political crisis in Pakistan turned into a constitutional crisis, the International Monetary Fund (IMF) funding to the country is expected to hit another ‘pause’.

IMF’s resident representative in Islamabad, Esther Perez Ruiz said that the fund would engage once the new government is formed. The fund of USD 6 billion Extended Fund Facility (EFF) for Pakistan hit a deadlock when Prime Minister Imran Khan announced a major relief package involving a tax amnesty scheme and energy price cuts, as reported by Dawn.

This comes after a constitutional vacuum has been created by Imran Khan as he urged President Arif Alvi to dissolve the National Assembly. After days of exchange rate depreciation generated feared that IMF had ended or put on hold the programme with Pakistan.

When contacted, IMF’s Esther Perez Ruiz said, “The Fund looks forward to continuing its support to Pakistan and, once a new government is formed, we will engage on policies to promote macroeconomic stability, and inquire about intentions vis-a-vis programme engagement,” she said, adding “There is no concept of suspension within IMF programmes”

The Ministry of Finance also claimed that the two sides “remain engaged in data-sharing and reform discussions as part of EFF,” adding that there is no truth to speculation about the suspension of the programme,” reported the newspaper.