US, Facing its Own Default Fears, Says Wants to See Pak in an Economically Sustainable Position

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Last Updated: January 19, 2023, 09:39 IST

Washington, United States

Pakistan is fearing that it may default on its debt obligations as its forex reserves continue to dwindle (Image: Reuters)

Pakistan is fearing that it could default on its debt obligations as its foreign exchange reserves proceed to dwindle (Image: Reuters)

Pakistan’s foreign exchange reserves are dwindling and it has urged the IMF and Saudi Arabia to course of the bailout

The United States desires to see Pakistan in an economically sustainable place, an official spokesperson stated, amid reviews that the South Asian nation’s international alternate reserves are quick working out.

According to reviews, Pakistan’s international alternate reserve dropped to USD 4.three billion final week, which is claimed to be sufficient for 3 weeks of imports.

The foreign exchange reserves have dwindled regardless of efforts by the federal government to shore up its economic system.

“This (Pakistan’s monetary disaster) is a problem that we’re attuned to. I do know that Pakistan has been working with the IMF, with worldwide monetary establishments. We need to see Pakistan in an economically sustainable place,” State Department spokesperson Ned Price said at his daily news conference on Wednesday.

“Those conversations, as I understand it, are ongoing. We are supportive where we can be of our Pakistani partners, but ultimately these are conversations between Pakistan and international financial institutions,” he stated.

On January 6, Pakistan Prime Minister Shehbaz Sharif held talks with International Monetary Fund (IMF) chief Kristalina Georgieva to break the impasse over the discharge of the following tranche of help for the cash-strapped nation.

The world lender has refused to situation the brand new instalment of the already agreed mortgage since Pakistan was not residing up to the guarantees it made when the stalled mortgage of USD 6 billion was restored final 12 months.

Prime Minister Sharif additionally sought rest in the demand to improve electrical energy costs to compensate for the deviation of round ₹ 500 billion from the annual round debt administration plan.

These stay the foremost hindrances in reaching an preliminary understanding of a staff-level go to by the IMF to Pakistan.

Finance Minister Ishaq Dar has expressed hope of receiving a second USD three billion bailout from Saudi Arabia.

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(This story has not been edited by News18 workers and is printed from a syndicated information company feed)

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