WASHINGTON
Senior US official Elizabeth Horst has said that Pakistan needs to reform the energy sector and choose renewable energy sources.
The reforms proposed by the IMF will help Pakistan get out of the debt and external financing trap, she added.
According to media reports, Principal Deputy Assistant Secretary Elizabeth Horst, who heads the Bureau of South and Central Affairs at the US State Department, stressed the need to implement reforms to meet future challenges.
Elizabeth Horst said that this is a difficult economic situation, this is the situation in Pakistan, in America and in the whole world. How can America help Pakistan to avoid economic disaster? We are working every day to help Pakistan advance economic reforms that will make it more competitive and better prepared to meet future challenges.
The U.S. official highlighted recent U.S. efforts to help ease the pressure of the economic downturn and aid to victims of last year’s devastating floods, including emergency shelter, flood relief and food aid which is more than $21 million.
She said that at the same time we are building the future to help Pakistan move towards building resilience against natural disasters after recovery from disasters.
Through the Pak-US Green Alliance, we are making strategic investments in the energy, water and agriculture sectors, which will strengthen climate resilience, bring innovation in the energy sector and promote inclusive economic growth, she added.
Stressing the need to encourage foreign investment in Pakistan, Elizabeth Horst said that we want to see Pakistan succeed in the competitive US trade and investment market, it is no secret that when US companies Investing in Pakistan is very beneficial for both countries.
She maintained that US investment in Pakistan creates high-paying 21st century jobs, provides training and upskilling for workers and helps ensure compliance with international labor standards.
Without mentioning investments from other countries (such as China, which the US claims is contributing to Pakistan’s debt burden), the US official said US companies bring in investments, not loans, and that they are corporate. Social responsibility initiatives benefit local communities, so it is critical that Pakistan makes progress on economic reforms to create the confidence and trust for companies to invest, She continued.
It was brought to the attention of the senior US official that consumers in Pakistan are refusing to pay their electricity bills because the electricity bills have become unaffordable and the government has reduced the burden of electricity bills due to the agreement with the IMF. In response, she said that due to the global economic conditions, the prices of goods are increasing, many countries are suffering from inflation, due to which there are significant effects on the lives and livelihood of people.
Elisabeth Horst, however, defended IMF programs, and said that people often overlook the IMF’s work to help Pakistan make the necessary reforms to free itself from debt and external financing. She said that reforms in the energy sector have been needed for a long time and indeed there are programs to help ease the burden on the poorest.
She acknowledged that it is a universal truth that no one likes to pay high bills, but warned that without reforms in the energy sector, Pakistan’s entire economy would suffer. Other friendly countries are there to support Pakistan’s efforts.
The US official said that such reforms would require strong leadership and patience, but without making changes on issues such as taxation and investment, Pakistan would not be able to stand on its own feet.
She said that the IMF program is only a part of the reforms that Pakistan needs to undertake, a prosperous and economically stable Pakistan, in the interest of the Pakistani people and us as well, with inclusive development and for future generations.
At the end of this month, Caretaker Prime Minister Anwarul Haq Kakar is expected to discuss the economic crisis during his meeting with the American and IMF officials in New York, and the finance minister will also be included in his delegation.
