Amid Pakistan’s pursuit of a fresh International Monetary Fund (IMF) bailout package, the United States pledged its support to Islamabad in tackling the nation’s significant debt burden.
State Department spokesperson Matthew Miller stated on Wednesday, “Pakistan has taken steps to stabilize its economy, and we stand behind its efforts to manage its considerable debt challenges. We urge the government to prioritize and expand economic reforms to address these economic hurdles.”
Miller emphasized the unwavering commitment of the US to Pakistan’s economic prosperity, affirming ongoing engagement through technical agreements, trade, and investment relations—all fundamental aspects of the bilateral partnership.
He applauded the staff-level agreement reached between Pakistan and the IMF on the final review under the $3 billion Stand-By Arrangement, potentially unlocking approximately $1.1 billion for Pakistan, pending approval by the IMF board.
Finance Minister Muhammad Aurangzeb is presently in the US for discussions with the IMF regarding a new bailout package and participation in the World Bank meetings. Sources indicated Pakistan’s intent to seek an increase in the Extended Fund Facility (EFF) with climate finance, potentially securing between $6 to $8 billion.
Prior to Aurangzeb’s visit, IMF chief Kristalina Georgieva acknowledged Pakistan’s successful progress under its existing programme and noted improved economic performance.
She expressed readiness to continue supporting Pakistan’s economic trajectory, hinting at the possibility of a follow-up programme.
