In a recent development, the United States has pledged its support for Pakistan’s ongoing efforts to secure a bailout package from the International Monetary Fund (IMF). The announcement came from US State Department spokesperson Matthew Miller during a press briefing on Thursday.
Miller expressed the US government’s stance, stating, “When it comes to efforts to stabilize its economy, including through reaching an agreement with the IMF, we support those efforts.”
Pakistan recently concluded a nine-month economic reform program, receiving the final $1.1 billion tranche of a standby arrangement. However, challenges persist, with high inflation projected to hit approximately 20% by June 2024.
In response, Antoinette Sayeh, the IMF deputy managing director, emphasized the importance of Pakistan’s commitment to sound macroeconomic policies and structural reforms beyond the completion of the program.
The IMF has recommended maintaining a tight monetary policy to curb inflation and bolstering the financial sector. Additionally, accelerating structural reforms in areas such as state-owned enterprises, governance, and climate resilience is deemed crucial for sustainable growth and job creation.
The Pakistani government, led by Prime Minister Shehbaz, has reaffirmed its intention to pursue a new multi-billion dollar loan agreement with the IMF. Finance czar Muhammad Aurangzeb aims to finalize the program’s framework by May.
US Ambassador to Pakistan Donald Blome has also pledged support for Pakistan’s economic progress, emphasizing collaboration between the two nations.
Furthermore, the State Department stressed the importance of expanding economic reforms as advised by the IMF. Miller emphasized that US support for Pakistan’s economic success remains steadfast, with a commitment to engage in technical assistance, trade, and investment initiatives to strengthen bilateral ties.
As Pakistan continues its journey towards economic stability, international support, particularly from the United States, could play a significant role in navigating through these challenging times
