Islamabad: Pakistanis powerful army Chief urges Washington to use his leverage to ensure his early release International Monetary Fund money, Pakistani sources said on Friday, as the South Asian nation struggles to survive the economic crisis.
Pakistan’s Foreign Office confirms phone conversation between US Deputy Secretary of State Wendy Sherman and General Qamar Javed Bajwa, but did not give details.
Islamabad and International Monetary Fund An employee-level agreement was reached earlier this month to pave the way for a $1.17 billion tranche issuance — but the lender is awaiting approval from its board, which is not scheduled to meet until the end of August.
Several Pakistani government sources told Reuters on condition of anonymity that Bajwa asked the US to help expedite the release with Pakistan’s dwindling foreign exchange reserves and a free-falling currency.
The contact was first reported by Nikkei Asia.
“Yes, our army chief has contacted the Americans,” said one of the sources, who Bajwa spoke to Sherman over the phone earlier this week.
“We can’t say what the Americans’ reaction was, but we think it’s a good step at this crucial stage,” the source said.
The source said the Army had to take the initiative when several backdoors from the civilian side did not yield immediate results. The Pakistan Army has long played an influential role in policy matters in Pakistan.
A State Department spokesperson said that, “US officials regularly speak to Pakistani officials on a range of issues. As standard practice, we do not comment on the specifics of private diplomatic interactions.”
The United States is the largest shareholder in the IMF. Washington has worked closely with civilian governments over the years with Pakistani army chiefs.
A local representative for the military’s public relations wing, the finance ministry, the information ministry and the IMF did not respond to a Reuters request for comment.
The approval of the IMF board will also open other avenues of finance for Pakistan.
High commodity prices have given a tough competition to Pakistan. The current account deficit widened to over $17 billion in the last fiscal, compared to less than $3 billion in the previous period. Under two months of imports, the reserves have plummeted to alarming levels.
Pakistan’s Foreign Office confirms phone conversation between US Deputy Secretary of State Wendy Sherman and General Qamar Javed Bajwa, but did not give details.
Islamabad and International Monetary Fund An employee-level agreement was reached earlier this month to pave the way for a $1.17 billion tranche issuance — but the lender is awaiting approval from its board, which is not scheduled to meet until the end of August.
Several Pakistani government sources told Reuters on condition of anonymity that Bajwa asked the US to help expedite the release with Pakistan’s dwindling foreign exchange reserves and a free-falling currency.
The contact was first reported by Nikkei Asia.
“Yes, our army chief has contacted the Americans,” said one of the sources, who Bajwa spoke to Sherman over the phone earlier this week.
“We can’t say what the Americans’ reaction was, but we think it’s a good step at this crucial stage,” the source said.
The source said the Army had to take the initiative when several backdoors from the civilian side did not yield immediate results. The Pakistan Army has long played an influential role in policy matters in Pakistan.
A State Department spokesperson said that, “US officials regularly speak to Pakistani officials on a range of issues. As standard practice, we do not comment on the specifics of private diplomatic interactions.”
The United States is the largest shareholder in the IMF. Washington has worked closely with civilian governments over the years with Pakistani army chiefs.
A local representative for the military’s public relations wing, the finance ministry, the information ministry and the IMF did not respond to a Reuters request for comment.
The approval of the IMF board will also open other avenues of finance for Pakistan.
High commodity prices have given a tough competition to Pakistan. The current account deficit widened to over $17 billion in the last fiscal, compared to less than $3 billion in the previous period. Under two months of imports, the reserves have plummeted to alarming levels.