US says Pakistan needs to work with IMF for economic fix

By Staff Reporter

ISLAMABAD: The U.S. urged Pakistan to continue working with the International Monetary Fund to address its economic challenges, saying there is no easy solution to its fiscal woes.

Elizabeth Horst, the U.S. principal deputy assistant secretary of state for South and Central Asia, said the $3 billion standby arrangement that Pakistan reached with the IMF last month provides “a breathing space” for the country.

“Pakistan should continue to work with the IMF. There’s no quick fix but there’s a fix,” Horst said in a conversation with Pakistani journalists based in Washington.

She acknowledged that the IMF-backed reforms would be tough for Pakistanis, but they are necessary to overcome the economic problems.

Horst also welcomed the announcement of elections in Pakistan, saying the U.S. is ready to work with any government elected by the people of Pakistan.

She stressed that the U.S. has no role in Pakistan’s politics and does not favor any party over another.

“We support the rule of law and democracy in Pakistan,” she said. “It’s for the Pakistani people to decide who they want to elect.”

Horst said Pakistan and the U.S. have an enduring partnership and share common interests in many issues, such as economy, climate change, health, and energy.

She said the U.S. is the largest buyer of Pakistani products, with bilateral trade reaching $9 billion last year.

She also said the U.S. invested $250 million in Pakistan in 2022 and provided $215 million for flood relief.

She added that the U.S. has given over $20 billion to Pakistan in the last 20 years.

“Last year, we had a Trade and Investment Framework Agreement meeting after eight years; climate, energy, health dialogues were also held. We are also working on a green alliance framework,” she said. “So, we are resetting the relationship.”

Horst noted that there are at least 550,000 Pakistanis living in the U.S., who can play a key role in strengthening the ties between the two countries.

The U.S. official also recognized that Pakistan has suffered from terrorism, with about 80,000 Pakistanis killed by terrorist attacks. She said terrorism is both a regional and domestic issue for Pakistan, while the U.S. considers it a global threat.

“The two countries have a common interest in countering terrorism,” she said.