ISLAMABAD: United States Ambassador to Pakistan Donald Blome on Monday highlighted Washington’s ongoing support for Pakistan’s economic reforms agenda in a meeting with Finance Minister Muhammad Aurangzeb as Islamabad seeks a larger loan program from the International Monetary Fund (IMF) to stabilize its fragile economy.
“US Ambassador Donald Blome met Monday with Finance Minister Muhammad Aurangzeb to discuss key aspects of the US-Pakistan trade, investment, and economic relationship,” US Acting Mission Spokesperson Thomas Montgomery said on Monday.
The US ambassador highlighted the ongoing American support for Pakistan’s economic reform agenda. The US embassy said Washington was committed to working with Pakistan in technical and development-related initiatives. It added that Blome emphasized in the meeting how the US remained Pakistan’s largest export market, making it a major source of high-quality investment and a “strong partner” for Pakistan’s economic future.
Economic policy over next several months crucial for Pakistan: US Ambassador
Reeling from low foreign exchange reserves, massive currency devaluation and high inflation since the past two years, Pakistan faces a chronic balance of payment crisis. Pakistan last month completed a short-term $3 billion IMF loan program that helped it avert a sovereign default. However, Prime Minister Shehbaz Sharif continues to stress the need for longer-term program from the international lender to stabilize Pakistan.
The IMF has pressed upon Islamabad to undertake vital economic reforms which include overhauling loss-making state-owned enterprises, introducing tax, energy and power reforms in exchange for a fresh loan program. Pakistan views the US as a key ally that can help alleviate its economic crisis, considering its huge influence within the IMF.
Pakistan’s economy has recorded some gains since last year when it narrowly avoided a sovereign default, with inflation coming down to around 17 percent in April 2024 from a record high of 38 percent in May 2023.
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