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Pakistan’s powerful army chief has reached out to Washington, asking for US help in securing an early release of a crucial $1.7 billion tranche from the International Monetary Fund to his country, which is grappling with an increasingly deepening emerging economic crisis, Pakistani officials said on Saturday.
According to several government officials, General Qamar Javed Bajwa discussed the matter with US Deputy Secretary of State Wendy Sherman and called on Washington to use his influence at the IMF to help Pakistan.
The profession was a rare handout from the army chief. Pakistan’s relations with the United States have been troubled in recent years, especially over the issue of neighboring Afghanistan, now controlled by the Taliban.
Relations remained particularly tense under former Prime Minister Imran Khan, who was ousted in a vote of no confidence in parliament in April. However, the Pakistani military, which has directly controlled the country for more than half of its 75-year history, has worked closely with the US and has been an official ally in the war on terror against al-Qaida.
Pakistan’s foreign ministry confirmed on Friday that Bajwa and Sherman had spoken.
“I understand that (the) conversation has taken place, but at this stage I am not directly aware of the content of this discussion,” said ministry spokesman Asim Iftikhar.
The officials speaking to The Associated Press on Saturday said the discussion centered on the IMF loan. They spoke on condition of anonymity as they were not authorized to speak to the media.
Pakistan and the IMF originally signed the bailout deal in 2019. But the release of a $1.7 billion tranche has been suspended since earlier this year, when the IMF expressed concerns about Pakistan’s compliance with the terms of the deal under Khan.
Khan’s successor, Prime Minister Shahbaz Sharif, and his government reached a preliminary agreement with the IMF earlier this month to revive the rescue package. That agreement had to be approved by the fund’s board of directors.
Pakistan had hoped for a quick revival of the bailout, but the IMF has so far failed to release the much-needed tranche, which may have prompted Bajwa’s appeal to Washington. It remained unclear what US officials could do to speed up the rescue operation.
There was no immediate comment from Washington on the phone call.
Bajwa also spoke by phone with the head of US Central Command in the Middle East, General Michael Kurilla, on Friday, according to a military statement. It quoted Kurilla as saying he appreciates Pakistan’s role in the stability of the region and hopes for further improvement in cooperation with Pakistan.
Pakistan desperately needs the IMF loan. Earlier in July, the fund said it would increase the value of the bailout from $6 billion to $7 billion if approved by its board of directors, which is usually considered a formality.
Sharif has repeatedly blamed the former prime minister’s government, alleging that Khan – a former cricketer turned Islamic politician – had deliberately violated the IMF’s terms in order to remain popular among the followers at home.
Analysts say the revival of the IMF bailout will help Pakistan and encourage other international financial institutions to cooperate with the South Asian country.
Sharif’s government has also been in touch with Washington about reviving the IMF bailout. Since his ouster, Khan has repeatedly claimed that his government was overthrown under a US plot, an accusation Washington denies.
Since Khan’s ouster, Pakistan’s currency has fallen to an all-time low amid uncertainty over the IMF’s aid. The rupee fell to a record low of about 240 against the dollar over the weekend. Previously, the dollar was sold for 225 rupees.
The steady decline in the currency of this Islamic nation has led to panic among the business community. Rising food prices and inflation have made Sharif’s government, now in office for four months, deeply unpopular.