Pakistan had hoped for the bailout to be revived quickly, and with IMF loan troubles Pakistan seeks US Help.
Pakistan seeks US Help, according to Pakistani officials, the army chief of Pakistan has made contact with Washington to ask for assistance in ensuring the early delivery of a key USD 1.7 billion payment from the International Monetary Fund to his country, which is dealing with a worsening economic crisis. Gen.
Qamar Javed Bajwa reportedly raised the matter with US Deputy Secretary of State Wendy Sherman and pleaded with Washington to utilize its clout with the IMF to aid Pakistan, according to multiple senior officials.
Pakistan had hoped that the bailout would be revived quickly, but the IMF has not yet made the crucial payment, which may be what motivated Bajwa to call the White House. What American politicians could do to hasten the bailout process remained a mystery.
The army chief’s request represented a rare act of outreach. Recent years have seen a degradation in Pakistan’s relations with the United States, primarily due to the neighboring country of Afghanistan, which is now governed by the Taliban.
Under previous Prime Minister Imran Khan, who was removed in a vote of no-confidence in Parliament in April, the ties were exceptionally tense. But Pakistan’s military, which has administered the nation directly for more than half of its 75-year history, has partnered closely with the US and served as an official ally in the fight against al-Qaeda.
The rescue agreement was first signed by Pakistan and the IMF in 2019. The disbursement of a $1.7 billion tranche, however, has been put on hold ever since the IMF voiced concerns about Khan’s administration’s compliance with the deal’s provisions early this year.
Prime Minister Shahbaz Sharif and his administration revived the rescue deal earlier this month after reaching a preliminary agreement with the IMF. Khan was succeeded by Sharif. The fund’s board of directors had to approve that arrangement.
Pakistan’s currency has fallen to an all-time low since Khan was removed, and IMF support remains questionable. Over the last weekend, the rupee fell to a historic low vs the dollar of roughly 240. The price of a dollar was once 225 rupees.
The business community in this Islamic country is in a panic as a result of the currency’s gradual depreciation. After four months in office, Sharif’s government is extremely unpopular due to rising food costs and inflation.
According to a military statement, Bajwa also spoke on the phone on Friday with Gen. Michael Kurilla, the commander of US Central Command in the Middle East. According to the report, Kurilla expressed appreciation for Pakistan’s contribution to the region’s stability and expressed hope for further advancements in cooperation with Pakistan.
The IMF loan was the main topic of conversation, according to the officials who talked with The Associated Press on Saturday. Since they were not permitted to speak to the media, they agreed to speak on the condition of anonymity. Washington did not immediately respond to a request for comment about the call.
