Dar assures US of Pakistan’s commitment to the IMF ‘despite challenging economic conditions’

Pakistan gave the United States reassurance on Wednesday that it was still committed to the International Monetary Fund (IMF) programme as the nation’s reserves fell to barely enough to cover one month’s worth of imports following another $500 million loan repayment.

According to a formal statement from the Ministry of Finance, Finance Minister Ishaq Dar met Robert Kaproth, Deputy Assistant Secretary of the US Department of the Treasury for Asia.

The status of the IMF programme was discussed by both parties during the meeting. Dar informed the US official about Pakistan’s efforts to reactivate the IMF programme.

“Despite challenging economic conditions, the government is focusing on fixing things in the right direction and introducing reforms in all sectors including the energy sector and capital market to achieve economic growth and development,” Dar told Robert.

Pakistan has been asked by the IMF to maintain a market-based currency rate, remove import restrictions, raise taxes, and raise electricity rates. However, the administration has not yet implemented any of these steps and is holding off until there has been a formal interaction with the international lender.

According to Express Tribune, the summit was held as foreign exchange reserves were sharply declining, falling to only two weeks’ worth of import coverage, the lowest level in more than nine years.