US Supports Pakistan's Economic Reforms Efforts, Urges Continued Collaboration with IMF

Pakistan Receives Economic Relief with $2 Billion Loan Extension from China.

US Supports Pakistan’s Economic Reforms Efforts, Urges Continued Collaboration with IMF. In a positive development, the United States has expressed its support for Pakistan’s endeavors to break free from the cycle of debt and international financing. During a press briefing, US State Department Spokesperson Mathew Miller highlighted the importance of Pakistan’s long-term economic stability and urged the country to persist in its collaboration with international financial institutions, particularly the International Monetary Fund (IMF), towards implementing macroeconomic reforms.

The US emphasized the critical role of the incoming government in prioritizing economic revitalization, stating that policies in the coming months will be instrumental in maintaining economic stability. Washington underscored the significance of Pakistan’s continued partnership with the IMF and other international financial institutions, recognizing their role in facilitating macroeconomic reforms.

Pakistan’s economy, grappling with significant challenges including record inflation, rupee devaluation, and diminishing foreign reserves, has been striving to stabilize following a $3 billion standby arrangement from the IMF last summer. In a recent development, China extended a $2 billion loan to Pakistan, providing relief by rolling over the loan due in March for another year.

Amidst these economic endeavors, the Pakistan Tehreek-e-Insaf (PTI) has raised concerns about the integrity of the February 8 general elections, alleging widespread intervention and fraud in the voting process. In a letter addressed to IMF Managing Director Kristalina Georgieva, PTI highlighted the importance of upholding democratic principles and combating abuse of power for personal gain, urging the IMF to consider these factors in its engagement with Pakistan.

The US statement signals a commitment to supporting Pakistan’s economic reform efforts and underscores the importance of international collaboration in addressing economic challenges. As Pakistan navigates its economic landscape, continued cooperation with global partners like the IMF remains crucial for fostering sustainable economic growth and stability.