After the debt-laden Pakistan received the first tranche of $1.2 billion by the International Monetary Fund, US Secretary of State Antony Blinken praised the move and said that the US stands with the people of Pakistan. The International Monetary Fund deposited the much-awaited first installment of $1.2 billion in State Bank of Pakistan as per its $3 million dollar bailout deal on Thursday. The deal will help Islamabad avoid defaulting on its debt repayments. In a tweet uploaded on Thursday, Secretary Blinken urged Pakistan to continue working with IMF toward macroeconomic reforms and sustainable economic recovery.

 "We stand by the Pakistani people during these hard times and welcome the International Monetary Fund's approval of a program to support Pakistan. We urge Pakistan to continue working with @IMFNews," said US Secretary of State Antony Blinken on Thursday. The financial infusion — part of a $3 billion new bailout deal — comes ahead of parliamentary elections due later this year. Earlier this week, the United States had welcomed the nine-month Stand-By Agreement (SBA) between Pakistan and the IMF, saying that it will continue to stand by Islamabad during difficult times.

 US State Department spokesperson Matthew Miller was asked about reports claiming that the US played a key role in helping Pakistan to secure a $3-billion package with the IMF. “What I would say is that we stand by the Pakistani people during these difficult times. We welcome the progress that has been made between the IMF and Pakistan in having reached a staff-level agreement. “Our support for the country’s economic success is unwavering,’’ he replied.

 Miller further said the US will continue to engage with Pakistan through technical engagements and continue to strengthen its trade and investment ties, ‘‘all of which are priorities for our bilateral relationship’’. ‘We believe Pakistan has a lot of hard work ahead to be on a long-term sustainable path to economic recovery and prosperity, but we will continue to stand by them through that process.’’ Blinken's statement comes after the IMF’s Executive Board on Wednesday approved a nine-month Stand-By Arrangement (SBA) for Pakistan for an amount of $3 billion.

 Following the Board’s approval, IMF deposited $1.2 billion into the State Bank of Pakistan (SBP), giving a much-needed boost to the economy reeling from dollar shortage and runaway inflation. The Fund stated that Pakistan’s’ economic reform programme aims to support immediate efforts to stabilise the economy and guard against shocks while creating the space for social and development spending to help the people of Pakistan. Pakistan, which has been teetering on the edge of default due to an acute foreign currency shortage, also got $1 billion from the United Arab Emirates and $2 billion from Saudi Arabia earlier this week.

Credit : Independent News Pakistan-INP