Ishaq Dar, the federal minister of finance and revenue, met with Donald Blome, the US ambassador to Pakistan, on Wednesday to discuss the recent agreement with the International Monetary Fund (IMF).
US apprised IMF’s Arrangement for Pakistan: The IMF announced on Friday that the IMF staff and the Pakistani government have agreed on policies. These policies will be backed by a $3 billion, nine-month Stand-By Arrangement (SBA).
The IMF expects the IMF Executive Board to approve the staff-level agreement by mid-July.
Blome called on Ishaq Dar today, according to a statement issued by the Finance Division.
“Finance Minister enthusiastically welcomed Blome and expressed appreciation for the long-standing, historically significant bilateral relationships with the United States on the trade and economic fronts.
In order to put the economy on the path from stability to growth, the finance minister also gave the ambassador an update on the successful staff level agreement with the IMF. He also discussed the government’s economic aims and strategies, according to the statement.
According to the Finance Division, Blome expressed trust in the government’s policies and plans aimed at bringing about economic sustainability in the nation.
The envoy also pledged his support for strengthening bilateral trade, investment, and economic ties between the two nations. “The two sides also exchanged views on areas of mutual interest and ways to strengthen the already-existing bilateral relations between the two countries.”
The IMF bailout package must resume, according to experts, if the cash-strapped South Asian economy is to avoid a balance of payment disaster.
According to experts, the investment from the international lender would also open the door for additional inflows from Pakistan’s multilateral and bilateral partners, lowering the likelihood of a future default.
Additionally, it stabilises the currency market and grounds projections for interest rates, inflation, and economic development.