WASHINGTON: The US Thursday called on Pakistan to move ahead on the stalled reforms sought by the International Monetary Fund (IMF), promising technical help as the country weathers an economic crisis.
Pakistan signed a $6.5bn bailout package with the IMF in 2019 but less than half has so far been released as the country reneges on the conditions. “The reforms that Pakistan and the IMF agreed to are not easy, but it’s crucial that Pakistan take these actions to bring the country back to sound financial footing, avoid falling into further debt and grow economy,” said the State Department official in charge of Pakistan, Elizabeth Horst.
“The United States is going to continue to support Pakistan through technical engagements and assistance, particularly when it comes to encouraging Pakistan to enact policies that promote an open and fair and transparent business climate,” she said at the Wilson Center think tank.
The global lender wants the world’s fifth most populous nation to boost its low tax base, disallow tax exemptions for the export sector and raise artificially low petrol, gas and electricity prices meant to help low-income segments.
The US is the largest contributor to the Fund and has a complicated relationship with Pakistan, a partner during the Cold War and “war on terror” that however maintained ties with Afghanistan’s Taliban. Pakistan earlier in April announced a boost of $1.3bn from two close partners, China and the United Arab Emirates.
