F.P. Report
WASHINGTON : The United States said on Wednesday Pakistan’s new government should address the economic situation facing the country on priority, emphasizing it was important for the emerging administration in Islamabad to continue engagements with international financial institutions.
Pakistan is holding the first National Assembly today, Thursday, in which the newly elected lawmakers will take oath. The country’s new government is expected to take the reins of power within the next few days after the in-house election of the next prime minister.
The issue of Pakistan’s economy came up for discussion during a regular State Department briefing after a journalist asked about a letter written by former premier Imran Khan’s party to the International Monetary Fund (IMF), asking it to link the next loan facility to “good governance” in the country.
“I’ll just say with respect to the IMF that we support Pakistan’s efforts to break free from the vicious cycle of debt and international financing,” Spokesperson Matthew Miller said. “The long-term health of Pakistan’s government – or economy is crucial to its stability.”
“Pakistan’s new government must immediately prioritize the economic situation because the policies over the next several months will be crucial to maintaining economic stability for Pakistanis,” he added. “And we urge Pakistan to continue working with the IMF and other international financial institutions toward macroeconomic reforms.”
Pakistan has been facing significant financial challenges in recent years, with dwindling foreign exchange reserves and declining value of its national currency.
The country’s caretaker administration negotiated a $3 billion, short-term loan facility with the IMF that is scheduled to expire in March.
Pakistan’s economic challenges persist, prompting many analysts to point out it will continue to need external financing from the international lending agency.
courtesy : arab news
