As the International Monetary Fund (IMF) critically scrutinized Pakistan’s federal budget for the fiscal year 2022-23 demanding more budgetary measures, Islamabad has sought help from the United States to reach a deal with the Fund on resuming the $6 billion program.
State Minister for Finance Aisha Ghaus Pasha on Friday confirmed that Pakistan had reached out to the United States. The response from Washington was positive and the relations between the two nations were improving.
The minister said that the talks with the IMF were making headway as Pakistan offered explanations in response to the concerns flagged by the Fund.
She said that while the former rulers damaged the country’s credibility the current government was seeking better relations with all the nations. The prime minister and foreign minister were meeting everyone and our meetings with officials should be seen in this context, she said.
There were reports on Friday that Pakistan’s economic team, including Finance Minister Miftah Ismail and State Minister Pasha, had met with the US ambassador to Pakistan, Donald Blome in Islamabad.
The current government has removed subsidies on petroleum products and indicated in the budget proposal that it would be reimposing the petrol developments levy to collect Rs750 billion in revenue. However, the IMF country head said the country needed to do more on fiscal reforms.