US supports Pakistan’s efforts for IMF deal

The United States State Department said that Washington’s support, for Pakistan’s efforts to stabilise its economy including reaching a deal with the International Monetary Fund (IMF), was “unwavering”.

“When it comes to efforts to stabilise its economy, we support those efforts, including reaching an agreement with the IMF,” said the department’s spokesperson, Matthew Miller.

“Our support for Pakistan’s economic success is unwavering and we will continue to engage with them through technical engagements as well as through our trade and investment ties, all of which are priorities of our bilateral relationship,” he stated.

It is pertinent to mention here that a mission of the International Monetary Fund (IMF) will arrive in Pakistan this month to discuss a new ‘long-term and larger’ loan programme, sought to help government repay billions in debt due this year.

Sources told ARY News that Pakistan and the international lender have scheduled talks on a new loan programme. The talks will take place in two phases, with technical-level discussions followed by policy-level negotiations.

Pakistan faces significant economic challenges ahead of the new talks, including a failed tax amnesty scheme proposed by the IMF.

Recently, Pakistan received the much-awaited $1.1 billion final tranche from IMF as part of the $3 billion standby arrangement.

The SBP said it received Special Drawing Rights (SDR) 828 million — equivalent to $1.1 billion in value — “following the successful completion of the second review by the Executive Board of IMF under Stand By Arrangement (SBA)”.

Pakistan is seeking a new long-term and larger IMF loan, with Finance Minister Muhammad Aurangzeb saying Islamabad could secure a staff-level agreement on the new program by early July.