The United States wants to see Pakistan in an economically stable position, an official spokesman said amid reports that the South Asian country’s foreign exchange reserves are fast depleting.
According to reports, Pakistan’s foreign exchange reserves declined to USD 4.3 billion last week, which is said to be enough for three weeks of imports. Foreign exchange reserves have dwindled despite the government’s efforts to strengthen its economy.
State Department spokesman Ned Price said, “This (Pakistan’s financial crisis) is a challenge that we are familiar with. I know that Pakistan is working with international financial institutions, with the IMF. We want Pakistan to be financially stable.” Would like to see in condition.” at his daily news conference on Wednesday.
“Those talks, as I understand it, are ongoing. We are supportive where we can be of our Pakistani partners, but ultimately these are talks between Pakistan and international financial institutions,” he said.
On 6 January, Pakistan Prime Minister Shehbaz Sharif held talks with International Monetary Fund (IMF) chief Kristalina Georgieva to break the impasse over releasing the next tranche of aid for the cash-strapped country.
The global lender has refused to release a fresh tranche of the previously agreed loan as Pakistan was not living up to the promises it made while restoring the USD 6 billion stalled loan last year.
Prime Minister Sharif sought exemption in demand for an increase in electricity prices to compensate for deviations from the annual circular debt management plan of about 500 billion rupees.
These are the major hurdles in reaching an initial understanding of a staff-level visit by the IMF to Pakistan. Finance Minister Ishaq Dar has expressed hope of getting a bailout of $ 3 billion from Saudi Arabia for the second time.
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