Federal Minister for Finance and Revenue Ishaq Dar met with US Ambassador to Pakistan Donald Blome on Wednesday, and apprised the envoy of the recent deal with the International Monetary Fund (IMF).
The meeting comes after the lender on Friday announced that its staff and Pakistani authorities have reached an agreement on policies to be supported by a $3-billion, nine-month Stand-By Arrangement (SBA).
The staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July.
As per a statement released by the Finance Division, Blome called on Ishaq Dar today.
“Finance Minister warmly greeted Blome and appreciated the deep-rooted historic and durable bilateral relations with the United States on economic and trade fronts.
“The Finance Minister also updated the ambassador about successfully reaching the staff level agreement with IMF and communicated the economic policies and priorities of the government in order to set the economy on the path from stability to growth,” read the statement.
Blome expressed confidence in the policies and programmes of the government aimed at bringing economic sustainability in the country, the Finance Division said.
The envoy also extended his support to further promote bilateral economic, investment and trade relations between the two countries. “The two sides also exchanged views about areas of common interest and how the existing bilateral relations between the two countries can be enhanced further.”
Experts have regularly stated the resumption of the IMF bailout package is crucial for the cash-strapped South Asian economy facing a balance of payment crisis.
The funding from the international lender would also pave way for further inflows from Pakistan’s multilateral and bilateral partners reducing risks of a potential default, experts have said.
In addition, it lends stability to the currency market, and anchors expectations of economic growth, inflation and interest rates.
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