US backs Pakistan’s efforts to manage ‘daunting’ debt burden

WASHINGTON: The US on Tuesday declared unwavering support to Pakistan in dealing with its economic woes and offered to ease Islamabad’s daunting debt burden.

“Pakistan has made progress to stabilize its economy and we support its efforts to manage its daunting debt burden,” the state department spokesperson, Matthew Miller, said during the daily briefing. Pakistan’s finance minister, Muhammad Aurangzeb, is in Washington to attend the IMF-WB Spring meetings and has been arguing for a new and expanded loan program so that the government could execute the economic reforms agenda.

“We encourage the government to prioritize and expand economic reforms to address its economic challenges,” the spokesperson said, adding that the US support for the country’s economic success is unwavering and “we will continue to engage with Pakistan through technical agreements as well as through our trade and investment ties, all of which are priorities of our bilateral relationship.” He also welcome the announcement that the IMF had reached a staff level agreement with Pakistan.

Responding to another question, the spokesperson reiterated that the U.S. encourages both India and Pakistan to avoid escalation and find a resolution through dialogue.