The United States has expressed its support and satisfaction for the recent 9-month Stand-By Arrangement (SBA) between Pakistan and the International Monetary Fund (IMF). The US State Department spokesperson, Matthew Miller, emphasized the significance of the agreement, stating that the country’s support for Pakistan’s economic success remains steadfast. In a press briefing, Miller highlighted the intention of the United States to assist Pakistan in overcoming its financial challenges and strengthening trade and investments between the two nations. He acknowledged that Pakistan still faces substantial work to achieve long-term sustainable economic recovery and prosperity, but assured that the United States will continue to stand by Pakistan throughout the process.
US Stance on Pakistan’s Relationship with China
Miller addressed the question of Pakistan’s relationship with China, stating that the United States refrains from advising Pakistan or any other country to choose between the United States and China. He emphasized that the bilateral relationship between Pakistan and the United States is built on close people-to-people ties, and both countries are committed to expanding their partnership and economic cooperation. This statement underscores the United States’ recognition of the importance of maintaining strong relationships with multiple nations without imposing exclusive choices upon them.
IMF Executive Board’s Meeting and Potential Impact on Pakistan
The remarks from the US spokesperson come ahead of the crucial meeting of the IMF Executive Board to discuss the short-term $3 billion bailout program for Pakistan, which is scheduled for later today. The proposed program spans a period of 9 months and aims to provide much-needed funding of $3 billion. If approved, this financial assistance would significantly bolster Pakistan’s foreign exchange reserves held with the State Bank of Pakistan. Recent unexpected inflows of $2 billion from the Kingdom of Saudi Arabia have already contributed to a positive outlook, and today’s vote by the IMF Board could potentially elevate the SBP reserves to exceed $7 billion.
