Pakistan needs power reforms to pay off its debt: US official

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A senior US official emphasized that the International Monetary Fund (IMF) reforms will aid Islamabad in breaking the “vicious circle of debt and international financing” and that Pakistan must implement energy reforms and choose renewable energy sources.

Elizabeth Horst, principal deputy assistant secretary and director of the State Department’s Bureau of South and Central Affairs, underlined the need of putting changes in place to address upcoming problems.

When he meets them in New York later this month, US and IMF representatives are anticipated to discuss the economic situation with caretaker Prime Minister Anwaarul Haq Kakar. He is accompanied by the finance minister.

When asked how Washington might assist Islamabad in avoiding an economic catastrophe, Ms. Horst responded, “These are tough economic times — in Pakistan, in the United States, and around the world.” “We are working day in and day out to support Pakistan in advancing economic reforms that will increase its competitiveness and better equip it to face future challenges,” she continued.

The American official went on to highlight recent US initiatives to lessen the impact of economic hardship, including aid for the victims of last year’s terrible floods, which included more than $215 million for shelter, food, and disaster relief.

While doing so, we are constructing for the future and assisting Pakistan in transitioning from recovery to resilience. via the US-Pakistan Green Alliance, we are strengthening climate resilience, advancing energy transformation, and fostering inclusive economic growth via strategic investments in energy, water, and agriculture, she added.