US supports IMF programme for Pakistan: Secretary Yellen
Pakistan
Congressman Al Green says Pakistan is a climate change study case, in dire need of funds
WASHINGTON (Dunya News/Web Desk) – 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.
Read more: IMF pushes Pakistan to increase tax, non-tax revenue collection
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.
Yellen on international financial institutions
During her testimony, the treasury secretary said the Biden administration wanted to bolster US leadership in international financial institutions. “To that end, we request authorisation to renew our participation in the IMF’s New Arrangements to Borrow.”
“We also seek authorization to lend to two key IMF trust funds – the Poverty Reduction and Growth Trust, and the Resilience and Sustainability Trust. These actions will help the IMF address economic crises, with a particular emphasis on supporting vulnerable developing countries amid heightened risks,” she said.
“Our leadership at these institutions is one of our core ways of engaging with emerging markets and developing countries,” the treasury secretary added while also mentioning desire for an enhanced role in the World Bank and other similar institutions.
However, she went on link these with conditions, “American values” and the criticism of China.
“These institutions reflect American values. Assistance from the IFIs [International Financial Institutions] comes with strong requirements for governance, accountability, and debt sustainability. It serves as an important counterweight to non-transparent, unsustainable lending from others like China.”
