US treasury secretary welcomes Pakistan’s economic reforms, return to capital markets

US Treasury Secretary Scott Bessent has welcomed Pakistan’s progress on economic reforms and its efforts to prepare for a return to international capital markets, according to a statement released by the US Treasury on Wednesday.

Bessent met Pakistan’s Finance Minister Muhammad Aurangzeb a day earlier and conveyed support for Islamabad’s attempts to strengthen macroeconomic stability, continue fiscal consolidation and build a more resilient economy. The Treasury said Bessent highlighted the importance of Pakistan continuing with reforms that could help the country become more economically self-reliant and support stronger growth over time.

The statement said the US official recognised the government’s efforts to implement significant economic changes and said Washington viewed the groundwork for a future return to capital markets positively. It also said Bessent commended Pakistan’s work to create conditions for improved market access and greater economic resilience.

The Treasury statement did not mention Pakistan’s request for a $10 billion exchange stabilisation facility. That proposed arrangement, as described in the feed, would involve support through the US Treasury’s Exchange Stabilisation Fund and could be used to bolster foreign exchange reserves and ease pressure on the economy.

Separately, Pakistan’s Ministry of Finance said on Tuesday that Aurangzeb had described the country’s economic path as moving from stabilisation toward sustainable, export-led growth. The ministry also said he pointed to Pakistan’s vulnerability to regional geopolitical developments and sought stronger US backing for the country’s access to international capital markets.

According to the Pakistani statement, Aurangzeb also referred to the need for higher foreign exchange reserves and improved sovereign credit ratings as part of a broader effort to secure market confidence. Both sides, the ministry said, reaffirmed their commitment to deeper bilateral economic cooperation, more US investment and progress on strategic projects.

The latest exchange comes as Pakistan continues to seek external support for its economy while presenting recent reforms as evidence of progress toward greater financial stability. The monitored public feed indicates that the discussions focused on reform momentum, future market access and the long-term effort to strengthen the country’s economic position.

This report is based on a monitored public feed.

Source: Dawn Home - https://www.dawn.com/news/2017582/us-treasury-secretary-welcomes-pakistans-economic-reforms-return-to-capital-markets