US Ambassador Donald Blome on Monday underlined Washington’s ongoing support for Pakistan’s economic reform agenda in a meeting with Finance Minister Muhammad Aurangzeb.

The meeting comes as Pakistan seeks a longer, larger loan program from the International Monetary Fund (IMF) to stabilise its economy, which remains engulfed in bulging external debt and dwindling foreign exchange reserves.

“US Ambassador Donald Blome met today with Finance Minister Muhammad Aurangzeb to discuss key aspects of the US-Pakistan trade, investment, and economic relationship,” said Acting US Mission Spokesperson Thomas Montgomery in a statement released by the US embassy.

“The Ambassador highlighted ongoing US support for Pakistan’s economic reform agenda.

“Blome noted the United States is committed to working with Pakistan in technical and development initiatives, emphasising that the United States remains Pakistan’s largest export market, a major source of high-quality investment and a strong partner for Pakistan’s economic future,” it said.

Pakistan’s $3-billion Stand-By Arrangement (SBA) concluded last month, but authorities in Islamabad have been keen to pursue a 24th bailout with the IMF, hoping that a longer, larger EFF will put it on the path of permanence when it comes to economic stability and reform.

Many analysts believe that the IMF and Pakistan will be able to reach a staff-level agreement once the government presents the budget on June 7.

Last week, the IMF mission, which concluded its visit on May 23, said that the Pakistan authorities and the Washington-based lender have made “significant progress” towards reaching a staff-level agreement (SLA) on a new programme.

“Building on the economic stabilisation achieved through the successful completion of the 2023 Stand-by Arrangement (SBA), the IMF and the Pakistani authorities made significant progress toward reaching a Staff Level Agreement (SLA) on a comprehensive economic policy and reform programme that can be supported under an Extended Fund Facility (EFF),” IMF Mission Chief to Pakistan Nathan Porter was quoted as saying in the statement.