Energy Reforms
WASHINGTON: A senior US official emphasized the need for Pakistan to undertake energy reforms and transition to renewable energy sources.
Principal Deputy Assistant Secretary Elizabeth Horst, who leads the Bureau of South and Central Affairs at the State Department, highlighted that implementing reforms, as suggested by the International Monetary Fund (IMF), would assist Islamabad in breaking the “vicious circle of debt and international financing.”
Caretaker Prime Minister Anwaarul Haq Kakar is set to discuss the economic crisis with US and IMF officials during his upcoming meeting in New York. His delegation includes the finance minister.
Ms. Horst acknowledged the challenging economic times globally and underscored Washington’s commitment to helping Pakistan advance economic reforms that enhance competitiveness and preparedness for future challenges.
Additionally, she mentioned recent US efforts to provide assistance to alleviate economic distress, including aid for flood victims, totaling more than $215 million for emergency shelter, disaster relief, and food.
She also highlighted the US-Pakistan Green Alliance, emphasizing strategic investments in energy, water, and agriculture to strengthen climate resilience, drive energy transformation, and promote inclusive economic growth.
Ms. Horst underlined the importance of encouraging foreign investments in Pakistan, particularly from US companies, as they contribute to job creation, skill development, and adherence to international labor standards.
She emphasized that US investments in Pakistan involve investment, not loans, and often include corporate social responsibility initiatives that benefit local communities.
Energy Reforms
While addressing the issue of consumers in Pakistan refusing to pay their electricity bills due to financial constraints and agreements with the IMF, Ms. Horst acknowledged the challenges posed by global economic conditions, including rising commodity prices and high inflation affecting people’s lives and livelihoods.
In defense of the IMF-backed programs, she highlighted the organization’s efforts to help Pakistan implement necessary reforms, particularly in the energy sector.
She emphasized that such reforms have been long overdue and that programs are in place to alleviate the burden on the poorest segments of the population.
Ms. Horst stressed the significance of energy sector reform for Pakistan’s economic stability, noting that without it, the country’s entire economy would continue to face difficulties. She reiterated the commitment of the US and Pakistan’s other friends to support Pakistan’s efforts in this regard.
She concluded by highlighting that these reforms would require strong leadership and patience, emphasizing that Pakistan’s ability to stand on its own hinges on changes in areas such as taxation and investment.
Ms. Horst emphasized that the IMF program is just one part of the reforms Pakistan needs to undertake, emphasizing the mutual interest in achieving a prosperous, economically stable Pakistan characterized by inclusive growth for future generations.
