Washington D.C., 13 July 2023 (TDI): US Secretary of State Anthony Blinken welcomes the decision made by the International Monetary Fund(IMF) to start a recovery Program for the almost defaulting Pakistan.
He urges Pakistan to work for macroeconomic reforms and sustainable economic recovery in the near future.
We stand by the Pakistani people during these hard times and welcome the International Monetary Fund's approval of a program to support Pakistan. We urge Pakistan to continue working with @IMFNews toward macroeconomic reforms and sustainable economic recovery.
— Secretary Antony Blinken (@SecBlinken) July 13, 2023
Decision made by IMF
The International Monetary Fund (IMF) has granted a 9-month Stand-By Arrangement (SBA) for Pakistan in the sum of about $3 billion to assist the government’s economic stabilization program.
Pakistan’s economic reform program intends to assist urgent measures to stabilize the economy and protect it from unexpected events, while also making room for social and development expenditures to benefit the Pakistani people.
Consistent policy execution will be important for Pakistan and the program’s success.
This will need more fiscal discipline, a market-determined exchange rate to absorb external pressures, and continued progress on the energy sector, climate resilience, and business climate reforms.
Following Pakistan’s independence in 1947, the US maintained diplomatic ties with the country.
The US collaborates closely with Pakistan on a wide range of topics, including energy, commerce and investment, health, sustainable energy, and combatting climate change, as well as Afghanistan stabilization and counterterrorism.
The United States has been one of Pakistan’s greatest sources of foreign direct investment and remains the country’s largest export market.
Trade and investment relations between the United States and Pakistan continue to strengthen.
Moreover, the United States government supports this relationship by organizing business-to-business trade delegations, providing technical assistance, and promoting business opportunities for U.S. companies interested in developing US-Pakistan commercial partnerships.
Furthermore, the US has committed more than 77 million COVID-19 vaccine doses to Pakistan, including 16 million pediatric vaccinations pledged recently in Washington, and has cooperated with Pakistani institutions to improve detection and treatment capacity throughout the epidemic.
Meanwhile, Pakistan has been a key participant in promoting educational possibilities through the world’s biggest Fulbright program for more than 70 years.
In terms of combating terrorism and internal security, Pakistan has taken certain steps against militant groups and UN-designated terrorist organizations in line with its National Action Plan.