'Bring country back to sound financial footing': US calls on Pakistan to move forward on IMF reforms

Washington: The United States on Thursday asked Pakistan to move ahead on stalled reforms sought by the IMF as the world’s fifth most populous nation weathers an economic crisis.

“The reform(s) 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 Pakistan’s economy,” said Elizabeth Horst, the State Department official in charge of Pakistan.

In 2019, Pakistan and the International Monetary Fund agreed to a $6.5 billion rescue package, however less than half has been disbursed due to Pakistan’s violation of the terms.

The US promised Pakistan technical assistance to encourage it to enact policies that promote transparent business climate.

“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,” Horst said at the Wilson Center think tank.

The International Monetary Fund demands that Pakistan increase its pitifully meagre tax base, abolish tax exemptions for export businesses, and hike artificially cheap rates for gas, electricity, and oil that are intended to aid low-income families.

The United States is the largest contributor to the IMF and has a complicated relationship with Pakistan, a partner during the Cold War and “war on terror” that nonetheless maintained ties with Afghanistan’s Taliban.

Pakistan earlier this month announced a boost of $1.3 billion from two close partners, China and the United Arab Emirates.

With inputs from agencies

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