Pakistan’s ongoing discussions with the International Monetary Fund (IMF) regarding a new multi-billion-dollar loan agreement, US State Department Spokesperson Matthew Miller emphasized the need for Pakistan to prioritize and expand economic reforms to address its economic challenges.
During a press briefing, Miller welcomed the recent announcement of the IMF reaching a staff-level agreement with Pakistan and acknowledged the progress made by Pakistan in stabilizing its economy. He expressed support for Pakistan’s efforts to manage its debt burden but urged the government to prioritize and expand economic reforms.
Miller reiterated the unwavering support of the United States for Pakistan’s economic success and highlighted the importance of bilateral engagement through technical agreements, trade, and investment ties.
Pakistan, having averted a last-minute default last summer with a short-term IMF bailout, is approaching the conclusion of a nine-month, $3-billion Stand-By Arrangement. Negotiations for a new multi-year IMF loan program worth “billions” of dollars are underway, as Finance Minister Muhammad Aurangzeb confirmed during an interview in Washington.
While the IMF spokesperson indicated the Fund’s current focus on completing the ongoing Stand-By Arrangement, discussions regarding a successor program are anticipated, with the new government expressing interest in such a program. Fund staff stand ready to engage in initial discussions for the successor program.
