US Assistant Secretary of State for South and Central Asian Affairs Donald Lu has expressed strong support for Pakistan's ongoing economic recovery and counter-terrorism efforts, emphasizing America's commitment to the country's success.
In a statement on Thursday, Lu highlighted the close cooperation with the Pakistan Army and the government in the fight against terrorism and acknowledged the significant progress the country is making in revitalizing its economy. "America wants Pakistan to succeed."
Speaking after a meeting with Finance Minister Muhammad Aurangzeb, Lu noted that Pakistan's economic recovery, while challenging, is an encouraging development that benefits all Pakistanis. "We are very encouraged by the economic recovery that Pakistan is going through. This recovery is beneficial for every Pakistani," he said, adding that these reforms represent the future of Pakistan.
Lu also acknowledged the deep ties with the government of Prime Minister Shehbaz Sharif and a close relationship with the people of Pakistan.
He said his meeting with Finance Minister Muhammad Aurangzeb provided an opportunity to discuss Pakistan’s ambitious economic plans and reform strategies aimed at securing long-term stability. "These reforms are not easy, but they are the future of Pakistan," Lu stated.
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He further emphasized that these economic reforms are vital for Pakistan’s financial stability and growth, and the US is keen to support these efforts.
On Wednesday night, the International Monetary Fund (IMF) Executive Board approved a $7 billion loan for Pakistan under the Expanded Fund Facility (EFF), and immediately released nearly $1 billion to help Pakistan address its economic challenges and restore macroeconomic stability.
In a statement announcing the new loan program, which spans 37 months, the IMF noted that Pakistan's economic growth rate has reached a modest 2.4% in the last fiscal year, and inflation fallen significantly to single digits.
This improvement was largely driven by activities in the agricultural sector and the implementation of adequate fiscal and monetary policies, which helped keep the country’s current account deficit under control. This allowed the foreign exchange reserves to improve again, while the decline in inflation reflects an improvement in the internal and external conditions.
Supporting Pakistan's Economic Recovery
US Assistant Secretary of State for South and Central Asia Donald Lu is optimistic about Pakistan's economic recovery and ongoing reforms and underscored that the United States is enjoying a stronger relationship with Pakistan under Prime Minister Shehbaz Sharif's government.
In an interview with a local private media channel, Lu highlighted the deep connection between the US and the people of Pakistan. The US assistant secretary of state also reaffirmed the United States' support for Pakistan's counter-terrorism efforts.
"We are greatly encouraged by the economic recovery Pakistan is undergoing," Lu remarked during the interview, which came after his meeting with Pakistan's Finance Minister, Aurangzeb at the World Bank headquarters. Both sides discussed Pakistan's economic reforms.
Lu described Pakistan's economic reforms as essential for its future. "These reforms are not easy, but they are crucial for Pakistan's long-term stability," he said, adding that their successful implementation would benefit all segments of society, including the youth.
Security Cooperation
On security cooperation, Lu reaffirmed the US support for Pakistan's counter-terrorism efforts. "We are working alongside Pakistan's military and government in their fight against terrorism," he noted. "The US wants Pakistan to thrive and succeed," Lu emphasised.
Continued Partnership
Donald Lu, the US diplomat who was at the centre of the cipher controversy that rocked Pakistani politics in 2022, has expressed confidence in the strengthening relationship between the US and Pakistan, highlighting the robust ties with the government of Prime Minister Shehbaz Sharif and a strong connection with the Pakistani people.
Lu has previously stated that the US wants Pakistan to succeed, and his recent remarks reaffirm this commitment. He expressed his confidence in the ongoing economic recovery Pakistan is experiencing, underscoring the vital role of the economic reforms in ensuring the country's long-term stability and progress. The US is fully supportive of these efforts and believes in Pakistan's potential to thrive.
The Cipher Controversy and Its Aftermath
The controversy surrounding the cipher, a secret diplomatic cable sent from Pakistan’s ambassador to the US to Islamabad, has had a significant impact on Pakistani politics. The cipher, which contained alleged warnings from Lu, was used by former Prime Minister Imran Khan to allege a US conspiracy to topple his government.
The cipher controversy led to political instability in Pakistan, and its effects continue to be felt. However, despite the controversy, the US remains committed to a strong relationship with Pakistan, and the country's economic recovery is a testament to the resilience of its people.
Pakistan's Economic Recovery and the Future
Pakistan's economic recovery is a welcome development, but it is important to remember that the road to sustained growth will be challenging. The country faces a number of structural problems that need to be addressed. These include a high level of public debt, a weak tax system, and a lack of investment in human capital. The government has been actively implementing reforms to address these challenges, and the IMF’s recent loan is a sign of confidence in the government's commitment to economic stability.
The US's continued support for Pakistan’s economic recovery is a positive development for the country. It is crucial for both countries to work together to achieve sustainable economic growth in Pakistan and create a more prosperous future for its people.
