WASHINGTON , June 14, 2023: Treasury Secretary Janet Yellen on Tuesday said the US supported the International Monetary Fund (IMF) programme for Pakistan.
Yellen expressed these views in her testimony before the House of Representatives’ Committee on Financial Services when Congressman Al Green demanded the US government to play a role to help Pakistan in the revival of the IMF programme.
The statement comes as the world’s top lender sticks with its harsh conditions while holding back the approval for the next tranche, as it pushes Islamabad even harder to increase revenue even at the cost of its people.
Green said Pakistan was already affected by floods and added that the US could deny global warming but Pakistan had been suffering from its effects.
The South Asian country was in dire need of revival of the IMF programme, said Green – a Democrat who is elected to the House of Representative from Texas at this time.
He said Pakistan was a case study on the effects of climate change. “As you know, Pakistan has suffered greatly from the floods that took place, beginning in June of 2022. I am going to ask you, if you were to use your good offices to help Pakistan, it clearly is in dire need of aid from the IMF and the World Bank as well,” he said.
The Congressman noted that Pakistan emitted about just 1 per cent of global greenhouse gases. “We [the US] emit more than 10pc, yet Pakistan suffers. Please do what you can,” he stressed.
Currently, the cash-strapped Pakistan government is in a race against time to implement measures to reach an agreement with the IMF as the country has foreign reserves barely enough for over one month of essential imports.
The agreement with the IMF on the completion of the ninth review of a $7 billion loan Extended Fund Facility programme — which has been delayed since late last year over a policy framework — would not only lead to a disbursement of $1.2bn but also unlock inflows from friendly countries.