U.S. Ambassador Donald Blom on Monday underscored Washington’s continuing support for Pakistan’s economic reform plans during a meeting with Finance Minister Muhammad Aurangzeb.
The meeting came as Pakistan seeks a longer-term, larger loan program from the International Monetary Fund (IMF) to stabilise its economy, which is struggling with rising external debt and dwindling foreign exchange reserves.
“U.S. Ambassador Donald Blom met today with Finance Minister Muhammad Aurangzeb and discussed important aspects of U.S.-Pakistan trade, investment and economic relations,” U.S. Embassy Deputy Spokesperson Thomas Montgomery said in a statement released by the U.S. Embassy.
“The Ambassador emphasized the United States’ continuing support for Pakistan’s economic reform plans.”
“Mr. Blom noted the United States is committed to technological and development collaboration with Pakistan, and emphasized that the United States is Pakistan’s largest export market, a major source of quality investment, and a strong partner for Pakistan’s economic future,” the statement said.
Pakistan’s $3 billion SBA ended last month, but authorities in Islamabad were keen to pursue a 24th bailout with the IMF in the hope that a longer-term and larger EFF could set the country on a more durable path forward in terms of economic stabilisation and reform.
Many analysts believe that the IMF and Pakistan will be able to reach a staff-level agreement once the Pakistani government presents its budget on June 7.
An IMF mission, which concluded its visit last week on May 23, said Pakistani authorities and the Washington-based IMF had made “significant progress” towards reaching a staff-level agreement (SLA) on the new program.
“Building on the economic stabilization achieved through the successful completion of the Stand-By Arrangement (SBA) in 2023, the IMF and the Pakistani authorities have made significant progress towards reaching a Staff-Level Agreement (SLA) on a comprehensive economic policy and reform program that can be supported under the Extended Fund Facility (EFF),” Nathan Porter, IMF’s representative in Pakistan, said in a statement.
