Blinken welcomes Pakistan-IMF deal, says US 'stands by Pakistani people'

US Secretary of State Antony Blinken Thursday welcomed the International Monetary Fund's approval of a programme to support Pakistan, saying "we stand by the Pakistani people during these hard times."

“We urge Pakistan to continue working with IMF toward macroeconomic reforms and sustainable economic recovery,” he said in a Twitter post.

Earlier this week, the United States welcomed a nine-month Stand-By Arrangement (SBA) agreement between Pakistan and the 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 a $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.’’

Blinken's statement comes after the IMF’s Executive Board on Wednesday approved a nine-month Stand-By Arrangement (SBA) for Pakistan for an amount of $3 billion.

Following the Board’s approval, IMF deposited $1.2 billion into the State Bank of Pakistan (SBP), giving a much-needed boost to the economy reeling from dollar shortage and runaway inflation.

The Fund stated that Pakistan’s’ economic reform programme aims to support immediate efforts to stabilise the economy and guard against shocks while creating the space for social and development spending to help the people of Pakistan.

Pakistan, which has been teetering on the edge of default due to an acute foreign currency shortage, also got $1 billion from the United Arab Emirates and $2 billion from Saudi Arabia earlier this week.