US welcomes staff-level agreement between Pakistan and IMF

The United States welcomed a nine-month Stand-By Arrangement (SBA) agreement between Pakistan and the International Monetary Fund (IMF), saying that it will continue to stand by Islamabad during difficult times.

US State Department spokesperson Matthew Miller was asked about reports claiming that the US played a key role in helping Pakistan to secure $3-billion package with the IMF.

“What I would say is that we stand by the Pakistani people during these difficult times. We welcome the progress that has been made between the IMF and Pakistan in having reached a staff-level agreement.

“Our support for the country’s economic success is unwavering,’’ he replied.

Miller further said the US will continue to engage with Pakistan through technical engagements and continue to strengthen its trade and investment ties, ‘‘all of which are priorities for our bilateral relationship’’.

‘‘We believe Pakistan has a lot of hard work ahead to be on a long-term sustainable path to economic recovery and prosperity, but we will continue to stand by them through that process.’’

His statement comes ahead of the fund’s Executive Board meeting scheduled to consider the 9-month SBA of $3 billion for Pakistan on (July 12 (today).

According to the IMF Executive Board calendar available on its website, the next meetings are scheduled for July 12, 13, 17, 19, and 20, 2023; however, Pakistan was not on the agenda till the filing of this report.

Sources, however, told Business Recorder that the Board is scheduled to take Pakistan’s case on the agenda on Wednesday.

The IMF team reached a staff-level agreement with the Pakistani authorities on a nine-month SBA on June 30. This agreement is subject to approval by the IMF’s Executive Board.

Official sources in the Finance Ministry revealed to Business Recorder that there are high chances that the IMF Executive Board would approve the new programme for Pakistan. After the approval of the IMF board, Pakistan will get the installment of $1.1 billion.

Meanwhile, the spokesperson was also asked to comment on whether Pakistan’s relations with China concern the US.

’’No, the United States does not ask Pakistan or any other country to choose between the United States and the PRC or to choose between the United States and any other country,“ Miller said.

He added that Washington’s relations with Pakistan build on ‘‘our close people-to-people ties, and we will continue to seek ways to expand our partnership and economic ties’’.

‘‘Our economic cooperation with Pakistan reflects our vision for the region as one of – comprised of nations that are independent, strong, and prosperous. And our relationships are based on a spirit of respect and partnership.’’