ISLAMABAD – United States Ambassador Donald Blome called on new Finance Minister Muhammad Aurangzeb and reiterated Washington’s support for completion of ongoing $3 billion International Monetary Fund (IMF) loan program.
The two sides shed light on crucial matters as Pakistani authorities are holding final round of talks with global lender on bailout funds. The talks, initially planned from March 14 to 18, are progressing constructively and positively, according to ministry sources.
A statement issued by US Embassy said US Ambassador Donald Blome discussed US cooperation and support for Pakistan’s reform targets, focusing on improving tax administration and the investment climate.
The ambassador expressed dedication to expanding US-Pakistan economic collaboration.
IMF’s review of Pakistan’s was expected to conclude earlier but was extended by a day as the agenda couldn’t be completed. Pakistani officials expressed interest in securing a new loan under the Extended Fund Facility (EFF) program to strengthen their debt-ridden economy.
During the ongoing talks, Aurangzeb led officials discussed annual taxation targets, abolishing subsidies, digitizing the tax system, and expanding the tax net. IMF wants Pakistan to continue its economic stabilization and reform agenda until a new loan program is negotiated.
Pakistan enters $3 billion IMF program in June last year after narrowly avoiding a sovereign default. The country’s $350 billion economy has been facing challenges, including low reserves, a balance of payment crisis, high inflation, high policy interest rates, and record local currency depreciation.
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