US urges Pakistan to prioritise, expand economic reforms

The United States said on Tuesday that the Pakistan government should prioritise and expand reforms to address its economic challenges.

The remarks were made by US State Department Spokesperson Matthew Miller when he was inquired about Pakistan’s ongoing discussions with the International Monetary Fund (IMF) on a new multi-billion-dollars loan agreement.

“So we welcome last month’s announcement that the IMF has reached a staff-level agreement with Pakistan,” Miller said in a press briefing.

“We understand the – as you said, the Pakistani minister of finance is in town here in Washington for meetings at the IMF and World Bank. Pakistan has made progress to stabilise its economy, and we support its efforts to manage its daunting debt burden.

“We encourage the government to prioritise and expand economic reforms to address its economic challenges,” he said.

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“Our support for the country’s economic success is unwavering, and we will continue to engage with Pakistan through technical agreements, as well as through our trade and investment ties, all of which are priorities of our bilateral relationship” the US official added.

Pakistan averted a last-minute default last summer owing to a short-term IMF bailout.

The South Asian nation is nearing the end of a nine-month, $3-billion Stand-By Arrangement in the coming days.

With the final $1.1 billion tranche of that deal likely to be approved later this month, Pakistan has begun negotiations for a new multi-year IMF loan programme worth “billions” of dollars, Finance Minister Muhammad Aurangzeb said during an interview in Washington.

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An IMF spokesperson told AFP earlier that the Fund is “currently focused on the completion of the current SBA,” referring to the ongoing nine-month programme scheduled for completion shortly.

“The new government has expressed interest in a new programme, and Fund staff stands ready to engage in initial discussions on a successor program,” the spokesperson added.