UNITED NATIONS: The United States (US) supports Pakistan’s efforts to “extricate itself” from a vicious cycle of debt and financing, a State Department spokesman said, urging the new government to continue working with the International Monetary Fund (IMF) and other global financial institutions. .
“Pakistan’s new government must immediately prioritize the economic situation because the policies of the next few months will be critical to maintaining the economic stability of Pakistanis,” spokesman Mathew Miller said at Wednesday’s daily news briefing.
The spokesman was responding to a question at the foreign ministry’s daily briefing about a letter sent by former Pakistan Tehreek-e-Insaaf (PTI) chairman Imran Khan to the IMF suggesting that another loan facility be linked to the February audit. 8 general elections in the country.
“With regard to the IMF, I will just say that we support Pakistan’s efforts to break out of the vicious circle of debt and international financing,” the spokesman said. “The long-term health of Pakistan’s government — or economy — is critical to its stability,” Miller added.
Pakistan has been struggling with financial problems in recent years, with dwindling foreign exchange reserves and the declining value of its national currency.
PTI had earlier asked the IMF to factor in the country’s political stability in any further talks on the bailout, it was revealed on Wednesday.
Addressing a press conference in Islamabad, PTI stalwart Barrister Gohar Ali Khan confirmed that the party had sent the letter to the IMF, adding that it would reveal its contents after it reaches Washington.
Hinting at what the letter might read, Gohar said the PTI had reminded the IMF of its promise to hold transparent elections in Pakistan. However, The Express Tribune has obtained a copy of the letter. In a letter addressed to IMF Managing Director Kristalina Georgieva, PTI claimed that it did not want to stand in the way of any global credit for Pakistan.
However, the party stressed the need for necessary reforms along with a tool to facilitate loan repayments.
“The IMF can only negotiate with an elected government that has the confidence of the people,” he said. The party urged the Washington-based lender to take into account its policy guidelines prepared in 1997.
“It is a well-established reality that a government without legitimate representation, when imposed on a country, has no moral authority to govern, and especially to impose tax measures.
