by Anwar Iqbal in Dawn, March 10th, 2023
WASHINGTON: The United States has offered to deepen its economic partnership with Pakistan but has also urged the cash-starved country to work with the International Monetary Fund to “unlock the IMF funding”.

At a Wednesday afternoon news briefing in Washington, US State Department spokesperson Ned Price also referred to clashes between police and PTI supporters in Lahore and urged both sides to show restraint.

Earlier in the briefing, a journalist reminded the State Department official that although a nuclear-armed country, Pakistan faces major economic and political challenges and a rising threat of terrorism. “Is the US worried that this strategically important country could fail?” he asked.

The US official reminded the audience that the US and Pakistan were close partners and Washington was ready to play its role in strengthening Pakistan.

“We have been there for Pakistan since its independence. We seek a stable, peaceful, and prosperous Pakistan,” Mr Price said. “We know that the Pakistani people are facing tremendous hardship, including economic hardship.”

The United States, he said, would “continue to look for ways in which we can support the Pakistani people to rebuild and to deepen the economic partnership that has existed with the United States over the course of decades now”.

Mr Price said the US was already “working with our Pakistani partners” to help them come out of this crisis. “And Pakistan in turn is also working with international financial institutions, the IMF, to put itself on a sustainable growth path,” the US official said.

“But when it comes to economic challenges, when it comes to security challenges, when it comes to political challenges, the United States is ready and able to continue to be a partner to the people of Pakistan and to our Pakistani counterparts as well.”

This was, so far, the strongest assurance from Washington during the economic crisis and may help stabilize the sinking economy. It also shows that the country’s economic situation has alarmed Washington as well.

A journalist, however, reminded Mr Price that some in Pakistan say that Washington can but is not helping the country in finalising a deal with the IMF.

“Ultimately, it’s going to have to be decisions on the part of our Pakistani counterparts to unlock this IMF funding. We encourage Pakistan to continue working with the IMF, especially on reforms that will improve Pakistan’s business environment,” Mr Price said.

“We believe that doing so — and the IMF believes this — will make Pakistani business more competitive, will also help Pakistan attract high-quality investment.”

The US official also reminded Pakistani planners that “more value than the potential investment dollars are the technologies, are the market connections and management systems that accompany foreign investment”.

Learning these techniques, he said, would improve the competitiveness of partnering Pakistani firms, fueling economic growth that would increase employment and household incomes.

“We believe that by continuing down this path and continuing to make the necessary decisions — economic decisions — that Pakistan can put itself, with the support of the international community, of course with the support of the United States, on a path to sustainable growth,” Mr Price explained.

Responding to another question, he said he was aware of the reported clashes in Lahore ahead of a PTI rally, adding that “we encourage all to exhibit restraint”.

The importance of upholding the universal rights of citizens, he said, has been “a constant topic of discussion with our counterparts around the world, including in Pakistan, including the right to peaceful assembly”.https://www.dawn.com/news/1741365/us-asks-pakistan-to-work-with-imf-to-unlock-funding