[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Finance Minister Ishaq Dar met with US Ambassador Donald Blome on Thursday, informing him about the progress of talks with the International Monetary Fund (IMF) and reiterating the government’s commitment to completing the programme.
Since early February, Islamabad has hosted an IMF mission to negotiate a series of policy measures to secure $1.1 billion in funding for the cash-strapped economy, which is on the verge of collapse.
The funds are part of a $6.5 billion bailout package approved by the IMF in 2019, which analysts believe is critical for Pakistan to avoid defaulting on external payment obligations.
The agreement will also open up additional bilateral and multilateral financing channels for Pakistan, allowing it to shore up its foreign exchange reserves, which have fallen to four weeks’ worth of import cover, and help it avoid a balance of payment crisis.
The United States is the IMF’s largest cumulative contributor, with $155 billion in contributions, as well as the largest voting bloc, with effective veto power over many decisions.
H.E. Mr.Donald Blome, Ambassador of the United States of America called on Finance Minister Senator Mohammad Ishaq Dar and exchanged views on matters of mutual interest and way forward for enhancing the existing bilateral investment and trade relations between the two countries. pic.twitter.com/avMM5yWaqn
— Ministry of Finance, Government of Pakistan (@Financegovpk) April 6, 2023
During the meeting, the minister spoke about the deep-rooted historic and durable bilateral relations with the US on economic and trade fronts.
Dar briefed the envoy on the country’s economic outlook and current challenges. He discussed the government’s pragmatic policy decisions to arrest the economic decline and steer the economy towards a positive trajectory leading to economic stability and growth.
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The finance minister also updated the envoy on the status of talks with the International Monetary Fund (IMF) and reaffirmed the government’s commitment to completing the programme.
On the occasion, Donald Blome expressed confidence in the government’s policies and programmes for the country’s economic sustainability and the socioeconomic uplift of the masses.
He pledged his support for the two countries’ bilateral economic, investment, and trade relations.
The two sides also discussed issues of mutual interest and expressed a desire to strengthen bilateral relations between the two countries. They also discussed various economic avenues through which both countries can strengthen their ties.
Ishaq Dar reaffirmed the government’s desire to strengthen bilateral trade and investment ties with the United States.
Last month, the IMF stated that Pakistan had made “significant progress” towards meeting policy commitments required to unlock loans needed to avoid default.
The international lender said Pakistan still needed to complete a few tasks before it could unlock a $6.5 billion loan to avoid a default, putting pressure on the government to secure assurances from countries that have promised financial assistance.
The IMF’s resident representative for Pakistan, Esther Perez Ruiz, stated that a staff-level agreement would be reached once the few remaining points were resolved.
To restart the $6.5 billion IMF loan package, the country has taken tough measures such as raising taxes and energy prices and allowing its currency to weaken.[/vc_column_text][/vc_column][/vc_row]
