Global Rice News

ISLAMABAD: The United States has emphasized the need for Pakistan’s new government to address the country’s economic situation as a top priority. It is important for the emerging administration in Islamabad to continue engaging with international financial institutions. Pakistan’s first National Assembly is scheduled for today, Thursday, where newly elected lawmakers will take oath. The new government is expected to take power in the coming days after the in-house election of the next prime minister.

During a regular State Department briefing, the issue of Pakistan’s economy was discussed after a journalist asked about a letter from former premier Imran Khan’s party to the International Monetary Fund (IMF), requesting a link between the next loan facility and “good governance” in the country.

Spokesperson Matthew Miller expressed the US’s support for Pakistan’s efforts to break free from the cycle of debt and international financing, stressing the importance of the long-term health of Pakistan’s government and economy for its stability. Miller added that the new government must prioritize the economic situation immediately, as the policies implemented over the next few months will be crucial for maintaining economic stability for Pakistanis. The US also urged Pakistan to continue working with the IMF and other international financial institutions to achieve macroeconomic reforms.

Pakistan has been facing significant financial challenges, including dwindling foreign exchange reserves and a decline in the value of its national currency. The caretaker administration negotiated a short-term loan facility of $3 billion with the IMF, which is set to expire in March. Analysts have highlighted that Pakistan will continue to require external financing from international lending agencies to address its economic challenges.

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