No quick fix to Pakistan’s economic problems: US State Department official

Washington: US Principal Deputy Assistant Secretary of State for South and Central Asia, Elizabeth Horst, has said that there is no quick remedy for Pakistan's economic problems, but following the agreement it has made with the International Monetary Fund (IMF), may help it get through the crisis, The Dawn reported.

“We support the arrangement. It provides a breathing space” to Pakistan, Horst said in a conversation with Washington-based Pakistani journalists on Friday. “Pakistan should continue to work with the IMF,” said the US official who heads the State Department’s Pakistan bureau.

“There’s no quick fix but there’s a fix,” she added.

Horst acknowledged that the coming days would be very tough for the people of Pakistan, but they have to go through this difficult phase to improve the economy.

She assured Pakistanis that the United States and Pakistan “have an enduring partnership,” which would not be affected by the current political situation, The Dawn reported.

She also offered some data, revealing that US businesses employed 120,000 Pakistanis, invested about USD 250 million in Pakistan in 2022, and contributed USD 215 million to disaster relief. According to The Dawn, this does not include the USD 33 million sent by Pakistani Americans.

Horst said that the US has provided over USD 20bn to Pakistan in the last 20 years. “Last year, we had a Trade and Investment Framework Agreement (TIFA) meeting after eight years, climate, energy, and health dialogues were also held. We are also working on a green alliance framework,” she said.

Horst noted that there were at least 550,000 Pakistanis in the US, who could play a key role in maintaining the US-Pakistan partnership, The Dawn reported.

She said that climate change, economy, and terrorism were Pakistan’s most pressing issues, and the United States was helping Pakistan deal with these issues.

Horst pointed out that terrorism was both a regional and domestic issue for Pakistan, while the United States considers it a threat to world peace.