Pakistan asked the US for assistance on Wednesday in reviving the IMF programme to ensure a gentle landing for its economy, which has been negatively impacted by exogenous problems like floods and unfavourable global economic conditions.
In a meeting on Wednesday, Finance Minister Ishaq Dar requested assistance from a visiting US delegation to persuade the multilateral lender in Washington to be forgiving toward Pakistan in restoring the programme while taking into account the difficulties brought on by floods and other external factors.
Robert Kaproth, Deputy Assistant Secretary of the Department of the Treasury, served as the delegation’s leader.
Mr Dar, according to informed sources, told the visitors that Pakistan would honour all its international commitments and was in the process of taking “very tough decisions”, including increasing the prices of natural gas and electricity and other measures “even beyond the call of IMF”, to put the country on the path to stability through reforms.
However, he emphasised that Pakistan needed a break because the country’s agriculture and industries had suffered some of their most difficult periods following the devastation of the floods.
The minister explained that aside from domestic problems, 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 in short supply. The US team wanted to understand Pakistan’s challenges, including the erosion of its currency.
The minister claimed in an official statement that the current administration had inherited a weak economic foundation. In order to achieve economic growth and development, the government is concentrating on turning things around and implementing reforms in all areas, including the energy industry and the capital market, it was said.
According to the finance ministry, Mr. Kaproth emphasised the importance of strong relations between the two nations and expressed confidence in the government’s plans and programmes for achieving economic and financial stability.
On matters of commerce and finance, Mr. Kaproth offered his assistance and cooperation. Senior government representatives from both nations were present.
