The United States State Department has reaffirmed its unwavering support for Pakistan’s efforts to stabilize its economy, including the recent agreement reached with the International Monetary Fund (IMF).
Matthew Miller, the department’s spokesperson, emphasized Washington’s commitment to Pakistan’s economic success and stated that the US would continue to engage with Pakistan through technical cooperation, as well as trade and investment ties, all of which are priorities in the bilateral relationship.
Notably, an IMF mission is scheduled to arrive in Pakistan this month to discuss a new, “long-term and larger” loan program aimed at assisting the government in repaying billions in debt due this year. Talks between Pakistan and the IMF will occur in two phases, starting with technical-level discussions followed by policy-level negotiations.
Pakistan confronts significant economic challenges ahead of these talks, including the setback of a failed tax amnesty scheme proposed by the IMF. However, the recent receipt of the long-awaited $1.1 billion final tranche from the IMF, as part of the $3 billion standby arrangement, has provided a boost.
The State Bank of Pakistan confirmed the receipt of Special Drawing Rights (SDR) 828 million, equivalent to $1.1 billion, following the successful completion of the second review by the IMF Executive Board under the Stand By Arrangement (SBA).
Finance Minister Muhammad Aurangzeb has expressed optimism that Islamabad could secure a staff-level agreement on the new IMF program by early July, signaling Pakistan’s ongoing efforts to address its economic challenges with international support.