Washington: Stressing that it would help Pakistan draw in “high-quality investment,” the US State Department has urged Pakistan to “continue working” with the International Monetary Fund (IMF), particularly on reforms that will enhance the nation’s business environment.
Ned Price, spokesperson for the State Department, responded to a question during a weekly press briefing. “We urge Pakistan to continue its collaboration with the IMF, particularly on reforms that will enhance the business climate in Pakistan. We think that by doing this, as does the IMF, Pakistan’s businesses will become more competitive and will be better able to draw in high-quality investment, he added.
The Pakistani government is working to put the IMF’s demands into action in order to finish the $7 billion Extended Fund Facility program, as the nation’s reserves are barely sufficient to cover imports for three weeks. The international lender has demanded Pakistan to guarantee that its balance of payments deficit is fully financed for the remaining period of an IMF programme, despite repeated assurances from Finance Minister Ishaq Dar that the staff-level agreement is “about to conclude”.
Price responded to a question about whether the US was concerned about Pakistan’s current state as it dealt with significant economic problems, political difficulties, and an increase in terrorist attacks by reiterating the US support for Pakistan through “economic partnership that has existed with the US over the years.”
He said that Pakistan was working with “international financial institutions — the IMF — to put itself on a sustainable growth path”.
“The United States is ready and able to continue to be a partner to the people of Pakistan and to our Pakistani counterparts as well,” he added.
In response to a question about if the US was not using its “friendly influence” that it had at the IMF to help Pakistan secure the deal, the spokesperson said: “Ultimately, it’s going to have to be decisions on the part of our Pakistani counterparts to unlock this IMF funding.”
Encouraging Pakistan to continue working with the money lender, Price highlighted that the technologies, market connections and management systems that accompany the deal were of more value than the “potential investment dollars”.
“They improve the competitiveness of partnering Pakistani firms, fueling economic growth that increases employment and household incomes,” he added.
The state department official asserted that it believed Pakistan could put itself on a path to sustainable growth by “continuing to make the necessary economic decisions”.
Additionally, responding to a query about police being involved in violence against the participants of the Aurat March in Islamabad a day ago, Price said the department was instead aware of the “clashes in Lahore ahead of a planned rally” by PTI Chairman Imran Khan and called for “all to exhibit restraint”.
