Economic recovery may take time: US official

There’s no quick solution to Pakistan’s economic problems, said Elizabeth Horst

(Web Desk) – The United States has assured the Pakistan government of support to overcome economic crisis.

US Principal Deputy Assistant Secretary of State for South and Central Asia Elizabeth Horst told media in capital Washington D.C. that the arrangements with the International Monetary Fund (IMF) would give Pakistan breathing space.

There’s no quick solution to Pakistan’s economic problems, she added.

Secretary Horst, who heads the State Department’s Pakistan bureau, advised the Pakistan government to continue working with the IMF.

She expressed the fear that coming days would be hard for the people of Pakistan and sounded optimism that the days are numbered.

They [the Pakistani nation] have to go through this difficult time to improve the economy, she added.

Assistant Secretary Horst rubbished rumours of soreness in Washington’s ties with Islamabad. The US has nothing to do with the political situation in Pakistan, she said, adding that the two countries “have an enduring partnership.”

She welcomed the announcement by the present regime to hold elections “in time” and categorically denied that the United States has any “favourites” in the country.

She said it was the right of the Pakistani people to elect their representatives. “The US supports the rule of law and democracy in Pakistan,” she continued.

Ms Horst said the US and Pakistan had a bilateral trade of $9 billion in 2022, which makes it the biggest partner of Islamabad in trade. The US companies invested around $250 million in Pakistan in 2022 and provided employment to 120,000 Pakistanis, she maintained.

The US also gave $215 million in flood assistance. This does not include the $33m sent by Pakistani Americans.

Ms Horst said that the US has provided around $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, health dialogues were also held. We are also working on a green alliance framework,” she said. “So, we are resetting the relationship.”

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

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

She acknowledged that about 80,000 Pakistanis have been the victims of terrorism, and that’s why she believed Pakistan had a vested interest in combating terrorism.

Ms 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.

“The two countries have a common interest in countering terrorism,” she concluded.