US Treasury Secretary Scott Bessent met Finance Minister Muhammad Aurangzeb a day earlier and welcomed Pakistan’s progress in implementing financial reforms and laying the groundwork for a return to worldwide capital markets, the Treasury stated in a statement on Wednesday.
In line with an announcement, Bessent emphasised the “significance of Pakistan’s work to proceed its reforms, change into extra economically self-reliant, increase development and strengthen its financial resilience”.
“Secretary Bessent welcomed the progress Pakistan has made in restoring macroeconomic stability and advancing fiscal consolidation, recognizing the federal government’s efforts to implement important financial reforms,” Treasury stated.
The assertion added that Bessent additionally expressed help for Pakistan’s efforts to construct higher financial self-reliance and counseled the federal government’s dedication to creating the situations for a profitable return to worldwide capital markets.
The assertion, nonetheless, didn’t deal with Pakistan’s request for a $10 billion trade stabilization facility.
In the meantime, an announcement issued by Pakistan’s Ministry of Finance on Tuesday stated that Aurangzeb highlighted Pakistan’s journey from macroeconomic stabilization to sustainable, export-led development, whereas noting the financial system’s vulnerability to regional geopolitical developments.
The assertion added that Senator Aurangzeb sought higher US help for Pakistan’s path to the market, underpinned by improved entry to worldwide capital markets, larger overseas trade reserves and enhanced sovereign credit score scores.
It stated each side reaffirmed their dedication to deepening bilateral financial cooperation, selling higher US funding and advancing strategic initiatives.
The proposed $10 billion trade stabilization facility could be a monetary mechanism beneath which the US authorities, by the Treasury’s Trade Stabilization Fund, would offer loans or different backstop services to Pakistan to bolster its overseas trade reserves, ease debt pressures, and assist stabilize the financial system.
Such services are primarily used to forestall forex instability and, the place vital, help a accomplice nation’s forex by intervention in overseas trade markets.
Further enter from Reuters