US Welcomes Pakistan’s Bailout Agreement With IMF

The United States has welcomed the 9-month Stand-By Arrangement (SBA) between Pakistan and the International Monetary Fund (IMF). “We welcome the progress that has been made between the IMF and Pakistan in having reached a staff-level agreement. Our support for the country’s economic success is unwavering,” said US State Department spokesperson Matthew Miller in a press briefing. He reaffirmed that the US intends to help Pakistan and bolster trade and investments with the cash-strapped nation. “We believe Pakistan has a lot of hard work ahead to be on a long-term sustainable path to economic recovery and prosperity, but we will continue to stand by them through that process,” he stated. Regarding Pakistan’s relationship with China, Miller said the US government abstains from advising Pakistan or any other country to pick between the United States and China. He went on to say that the Pak-US relationship is based on”close people-to-people ties” and that both countries will “continue to seek ways to expand our partnership and economic ties”. The US spokesperson’s remarks come ahead of the IMF Executive Board’s meeting on the short-term $3 billion bailout program for Pakistan scheduled for later today. The new program is 9 months long and ensures funding of $3 billion during the period. If approved, forex reserves held with the State Bank of Pakistan would rise substantially. With this week’s surprising inflows of $2 billion from the Kingdom of Saudi Arabia, today’s vote on Pakistan’s case by the IMF Board could propel SBP reserves above $7 billion.