US Assures Support for Pakistan's Economy and IMF Engagement

IMF approved $3 billion SBA for Pakistan to aid economic stabilization.
Finance Minister pledged policy implementation for economic stability.
Emphasis on free and fair elections in line with Pakistan’s laws and constitution.

US Acting Deputy Secretary of State Victoria Nuland recently had a phone conversation with Pakistan’s Foreign Minister Jalil Abbas Jilani, where she assured him of the United States’ backing to stabilize Pakistan’s economy. They also discussed the ongoing engagement with the International Monetary Fund (IMF) to support Pakistan’s economic stabilization program.

The IMF’s executive board had previously approved a $3 billion nine-month standby arrangement (SBA) to aid Pakistan’s economic stability efforts. This package included about $2.25 billion in Special Drawing Rights, equivalent to around $3 billion, accounting for 111% of Pakistan’s quota.

Caretaker Finance Minister Shamshad Mirza had engaged with the IMF staff mission earlier, pledging to implement policy actions under the SBA during the caretaker government’s tenure to ensure economic stability.

Informal updates were exchanged between the US and Pakistani sides regarding the program implementation, with a focus on structural benchmarks necessary for the second quarterly review scheduled for October or early November. Successful completion of this review would secure a disbursement of about $710 million as the second tranche in December.

The US State Department mentioned that Nuland congratulated FM Jilani on his appointment and discussed deepening the US-Pakistan partnership on mutual concerns. The talks specifically centered around Pakistan’s economic stability, prosperity, and its ongoing engagement with the IMF.

Both leaders also emphasized the significance of timely, free, and fair elections, respecting Pakistan’s laws and constitution.

Nuland shared her appreciation for the call on social media, highlighting their commitment to bilateral relations, Pakistan’s economic stability, security, and prosperity.

FM Jilani is expected to accompany the interim prime minister to the 78th UNGA in New York. The Pakistani delegation aims to hold meetings with US officials during their stay.

Earlier, Prime Minister Anwaarul Haq Kakar assured the US Ambassador that the caretaker government’s primary duty was to support the Election Commission in conducting general elections.

In a separate meeting with Chief Election Commissioner Sikander Sultan Raja, the US Ambassador reaffirmed the US’s support for free and fair elections conducted in alignment with Pakistan’s laws and Constitution.

Initially scheduled for November, Pakistan’s elections faced rescheduling due to digital census results approval and constituency delimitation adjustments, extending beyond the constitutional deadline for polls.

US Assures Support for Pakistan’s Economy and IMF Engagement

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