Finance Minister Ishaq Dar meets Deputy Assistant Secretary of the U.S. Department of the Treasury for Asia Robert Kaproth. Photo courtesy PID
Pakistan on Wednesday urged the U.S. to play its role in convincing the International Monetary Fund (IMF) to grant concessions over “harsh” conditionalities to allow Islamabad to overcome a trying economic and political situation.
According to sources, Finance Minister Ishaq Dar conveyed this request to Deputy Assistant Secretary of the U.S. Department of the Treasury for Asia Robert Kaproth, who met him at the Finance Division. An official press release said Kaproth was accompanied by Senior Macroeconomist for the Department of Treasury for Pakistan Eva Ghirmai and financial attache Larita Bolden, while Dar was joined by Minister of State for Finance and Revenue Aisha Ghous Pasha, Special Assistant to the P.M. on Finance Tariq Bajwa, the secretary of finance and other senior officers of the Finance Division.
Welcoming Kaproth, Dar briefed him on the economic outlook of the country, informing him that the incumbent government had inherited a weak economic legacy. Despite challenging economic conditions, he stressed, authorities were focusing on moving in the right direction by introducing reforms, including in the energy sector and capital market, to achieve economic growth and development.
Claiming that the government’s pragmatic measures would yield progress and development, he said the economic priorities of the government included putting the economy on the right path while fulfilling all international obligations.
The press release stated that Dar had also updated the visiting U.S. dignitary on the damages incurred by last year’s floods and their impact on the economy of Pakistan. He stressed that the government is handling all challenges with complete commitment. It said Kaproth, in response, had underscored good relations between Pakistan and the U.S. and expressed confidence in the policies and programs of the government for economic and financial stability.
The IMF program’s ninth review of an ongoing bailout has been stalled since last year, with the ruling coalition dithering on imposing harsh conditions—such as withdrawal of all subsidies and increasing utility tariffs—during an election year. Officials have repeatedly stressed that they do not wish to unleash a new wave of inflation, but fast-depleting foreign exchange reserves have left it with little choice but to return to the IMF. A bid to secure financial support from friendly countries has also hit an impasse, as they have urged Islamabad to first revive the IMF loan facility before they can release additional funds.