SBA provides a breathing space: US

ISLAMABAD: The United States has said that there is no quick solution to Pakistan’s economic problems but it should continue to work with the International Monetary Fund (IMF) to overcome its difficulties.

This was stated by US Principal Deputy Assistant Secretary of State for South and Central Asia Elizabeth Horst while holding a conversation with the Washington-based Pakistani journalists on Friday.

On the recently concluded $3 billion Stand-by-Arrangement (SBA) reached between Pakistan and the IMF, she said: “We support the arrangement. It provides (Pakistan) a breathing space”.

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She went on to say: “Pakistan should continue to work with the IMF…There’s no quick fix but there’s a fix.”

She recognised that the coming days would be tough for Pakistanis, but they have to pass through this phase to overcome economic problems.

She called the announcement of the elections in Pakistan encouraging. She said: “We are ready to work with the government elected by the people of Pakistan. But, she said, America has no role in Pakistan’s politics. “It’s for the Pakistani people to decide who they want to elect. We do not support one party against the other. We support the rule of law and democracy in Pakistan.”

She said Pakistan and USA have an enduring partnership, adding that both countries have common interest in many issues. She maintained that economy and climate change are major challenges for Pakistan.

Horst said that the US is the largest buyer of Pakistani products: the trade was $9 billion last year.

The state secretary said that in 2022, the foreign direct investment by the US for Pakistan was $250 million, while $215 million were given to Pakistan for the rehabilitation of flood victims.

Horst said that the US has provided over $20bn to Pakistan in the last 20 years.

“Last year, we had a Trade and Investment Framework Agreement (TIFA) meeting after eight years; climate, energy, health dialogues were also held. We are also working on a green alliance framework,” she said. “So, we are resetting the relationship.”

Horst noted that there were at least 550,000 Pakistanis in the US, who could play a key role in maintaining the US-Pakistan partnership.

The US official noted that about 80,000 Pakistanis have been the victims of terrorism, and that’s why she believed Pakistan had a vested interest in combating terrorism.

Horst pointed out that terrorism was both a regional and domestic issue for Pakistan, while the United States considers it a threat to world peace.

“The two countries have a common interest in countering terrorism,” she added.