ISLAMABAD: Pakistan sought the support of the United States on Wednesday to revive the IMF program in order to facilitate a soft landing for its economy, which had been hampered by exogenous obstacles like floods and adverse global economic conditions.
Finance Minister Ishaq Dar requested a US delegation to assist in persuading the Washington-based multilateral lender to be accommodating to Pakistan in restoring the program while recognizing the difficulties posed by floods and other external factors during a meeting on Wednesday.
Robert Kaproth, Deputy Assistant Secretary of the Department of Treasury, was in charge of the delegation.
According to well-informed sources, Mr. Dar assured the visitors that Pakistan would uphold all of its international commitments and was currently undergoing “very tough decisions,” such as raising the prices of natural gas and electricity and implementing additional measures “even beyond the call of IMF” to bring the nation’s stability through reforms.
But Pakistan needed some breathing room, he said, because agriculture and industry had been through the most difficult times since the devastating floods.
The minister explained that the rupee was also under pressure due to the smuggling of foreign currencies, particularly the US dollar, to Afghanistan and Iran, where the greenback was also short, as the US team wanted to understand Pakistan’s challenges, including the erosion of its currency.
The minister stated in an official statement that the current government had inherited a weak economic legacy.
“The government is focusing on fixing things in the right direction and introducing reforms in all sectors, including the energy sector and capital market, to achieve economic growth and development, despite challenging economic conditions,” it added.
According to the finance ministry, Mr. Kaproth expressed confidence in the government’s economic and financial stability policies and programs and emphasized the need for good relations between the two countries.
In matters pertaining to the economy and finances, Mr. Kaproth extended his support and cooperation.
The meeting was attended by senior representatives of both nations.