Energy reforms could end Pakistan’s vicious debt cycle: Horst

WASHINGTON: Pakistan needs to undertake energy reforms and opt for renewable energy sources, said a senior US official.

She tressed that reforms suggested by the International Monetary Fund (IMF) would help Islamabad break the “vicious circle of debt and international financing”.

Principal Deputy Assistant Secretary Elizabeth Horst, who heads the Bureau of South and Central Affairs at the State Department, emphasised the need to implement reforms to meet future challenges.

Caretaker Prime Minister Anwaarul Haq Kakar is expected to discuss the economic crisis with US and IMF officials when he meets them in New York later this month. His delegation also includes the finance minister.

“These are tough economic times — in Pakistan, in the United States, and around the world,” said Ms Horst when asked how Washington could help Islamabad avoid an economic collapse.

“We are working every day to help Pakistan make progress on economic reforms that will make it more competitive and better prepared to meet future challenges,” she added.

The US official then underlined recent US efforts to help ease the pressure of economic distress, including assistance for the victims of last year’s devastating floods, which includes more than $215 million for emergency shelter, disaster relief, and food.

“At the same time, we are building for the future helping Pakistan move from recovery to resilience.

“Through the US-Pakistan Green Alliance, we are making strategic investments in energy, water, and agriculture that strengthen climate resilience, drive forward energy transformation, and foster inclusive economic growth,” she said.