The United States State Department has reaffirmed its support for Pakistan’s efforts to stabilize its economy, including its pursuit of a deal with the International Monetary Fund (IMF).
According to Matthew Miller, the department’s spokesperson, Washington’s commitment to Pakistan’s economic success remains steadfast. He emphasized that the U.S. will continue to engage with Pakistan through various means, such as technical assistance, trade, and investment, all of which are priorities in the bilateral relationship.
In line with this, an IMF mission is scheduled to visit Pakistan this month to discuss a new, more substantial loan program aimed at assisting the country in repaying its substantial debts due this year. The discussions will occur in two phases, starting with technical-level talks followed by policy-level negotiations. Pakistan’s economic challenges, including the setback of a failed tax amnesty scheme proposed by the IMF, underscore the importance of these upcoming talks.
Recently, Pakistan received the final tranche of $1.1 billion from the IMF as part of a $3 billion standby arrangement. This financial support, equivalent to Special Drawing Rights (SDR) 828 million, follows the successful completion of the second review by the IMF Executive Board under the Stand By Arrangement (SBA).
Looking ahead, Pakistan aims to secure a new, more extensive IMF loan, with Finance Minister Muhammad Aurangzeb expressing optimism about reaching a staff-level agreement on the new program by early July.
