US supports Pakistan’s plan for fresh IMF loan programme
WASHINGTON (TLTP): The United States State Department has 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”.
During daily news briefing in Washington, State Department Spokesperson Matthew Miller emphasized Washington’s unwavering commitment to aiding Pakistan’s economic recovery.
Miller affirmed the US backing for Pakistan’s economic stabilization endeavours, explicitly mentioning the importance of reaching agreements with the IMF.
“When it comes to efforts to stabilise its economy, we support those efforts, including reaching an agreement with the IMF,” said 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.
He dismissed any insinuation that the financial assistance might be diverted towards Pakistan’s missile programme. “When it comes to efforts to stabilise its economy, we support those efforts, including reaching an agreement with the IMF,” said the US official while rejecting the suggestion that Pakistan may use the funds for its missile programme.
Additionally, the State Department spokesman urged the Pakistani government to prioritize and expand economic reforms to tackle its economic hurdles, underscoring that US support for Pakistan’s economic prosperity remains resolute.
Miller assured continued engagement between the United States and Pakistan, encompassing technical collaborations and efforts to enhance trade and investment ties. He emphasized that these aspects remain key priorities in the bilateral relationship.
The United States, he said, would continue to engage with Pakistan, and this would include “technical engagements” as well as strengthening “our trade and investment ties”. “All of these are priorities for our bilateral relationship,” he added.
Earlier, the Executive Board of the International Monetary Fund (IMF) had given approval to $1.1 billion loan tranche to Pakistan, marking the final installment of a $3 billion Stand-by Arrangement (SBA).
Confirming it, the State Bank of Pakistan 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)”.
In an official statement released on its website last month, the IMF stated, “The Executive Board of the International Monetary Fund (IMF) has completed the second and final review of Pakistan’s economic reform program supported by the IMF’s Stand-By Arrangement (SBA). This decision paves the way for an immediate disbursement of SDR 828 million (approximately $1.1 billion), bringing the total disbursements under the arrangement to SDR 2.250 billion (approximately $3 billion).”
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 said 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.
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.
