ISLAMABAD: A visiting United States official said on Friday Pakistan could deal with its economic deficiencies by implementing enduring financial reforms and creating a business environment which was conducive for increased foreign investment, reported the country’s state-owned news agency.
Pakistan is currently facing one of the worst economic crises in history. Its national currency has been rapidly losing its value against the US dollar while the government has substantially increased fuel prices in recent days to meet tough conditions set by the International Monetary Fund (IMF) for the resumption of a bailout program.
The inflation in the country already spiked to a multi-decade high 27 percent last month, and new reforms are likely to further increase the prices of essential items.
Discussing the ways in which Pakistan could deal with the ongoing financial crunch, Elizabeth Horst, the principal deputy assistant secretary for the Bureau of South and Central Asian Affairs at the US Department of State, said focusing on certain areas and formulating strategies could help improve the country’s economy.
“Long-lasting reforms in the economic sector and creating a business-conducive environment for the investors can help Pakistan cope with the prevailing economic issues,” she was quoted as saying by the Associated Press of Pakistan after she addressed a session at a university in Islamabad.
“Pakistan has a lot of investment potential in various sectors of the economy while robust policies can help attract local and foreign investment in the country, ensuring sustainable development,” she continued.
Horst said the country’s private sector should contribute to its economic growth along with the public sector.
Earlier in the day, the US said it was “concerned about the debt that Pakistan owes to China and other countries” amid the South Asian state’s ongoing financial turmoil.
