USA reacts to Pakistan economic crisis, says 'supportive where we can be, but...'

Updated : Jan 21, 2023 08:41
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Editorji News Desk

With Pakistan experiencing a severe economic crisis, the United States of America reacted to Islamabad's plight.

The Joe Biden government said that it is "attuned" to the challenge being faced by Pakistan, and wants to see the country in an "economically sustainable position". Washington said that it supports Islamabad where possible, but economic help is an ongoing conversation between Pakistan and international financial institutions.

Pakistan's foreign exchange reserves plunged to $4.3 billion last week, which is enough for 3 weeks of imports, according to reports.

On January 6, Pakistan Prime Minister Shehbaz Sharif held talks with International Monetary Fund (IMF) chief Kristalina Georgieva to break the deadlock over the release of the next tranche of assistance for the cash-strapped country.

The global lender has refused to issue the new instalment of the already agreed loan since Pakistan was not living up to the promises it made when the stalled loan of USD 6 billion was restored last year.

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Prime Minister Sharif also sought relaxation in the demand to increase electricity prices to compensate for the deviation of around Rs 500 billion from the annual circular debt management plan.

These remain the major stumbling blocks in reaching an initial understanding of a staff-level visit by the IMF to Pakistan.

Finance Minister Ishaq Dar has expressed hope of receiving a second USD 3 billion bailout from Saudi Arabia.

(With PTI inputs)

Pakistan joe bidenShehbaz Sharifunited states of americaIMF

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