Latest News

  • Home
  • Global
  • US warns IMF against bailout package for Pakistan to repay Chinese lenders
US warns IMF against bailout package for Pakistan to repay Chinese lenders
Friday, August 3, 2018 IST
US warns IMF against bailout package for Pakistan to repay Chinese lenders

The US today cautioned the IMF against a possible fresh bailout for Pakistan's new government to pay off Chinese lenders who have invested in the strategic China-Pakistan Economic Corridor.

 
 

"Make no mistake, we will be watching what the IMF does," US Secretary of State Mike Pompeo told CNBC in an interview.
 
He was responding to a question on reports that Pakistan was drawing up a plan to seek a massive USD 12 billion bailout package from the IMF.
 
"There's no rationale for IMF tax dollars - and associated with that, American dollars that are part of the IMF funding - for those to go to bail out Chinese bondholders or China itself," Pompeo said.
 
The International Monetary Fund has said that so far it has not received any such request from Pakistan. Cash-strapped Pakistan has availed of 14 IMF financing programmes since 1980.
 
Pakistan needs about USD 3 billion in the next few months to avoid defaulting of loans from IMF, China and the World Bank.
 
Pakistan currently has around USD 5 billion worth of loans from China.
Much of this has been used to fund major infrastructure projects under the USD 50 billion CPEC.
 
The CPEC is a network of infrastructure projects that are currently under construction throughout Pakistan that will connect China's remote Xinjiang province with Gwadar port in Pakistan's Balochistan province.
 
Key Trump administration officials are opposed to China wooing some developing countries with so much debt. They fear China is using loans and debt to gain influence over poorer states.
 
During the CNBC interview, Pompeo implicitly criticised China saying: "We're not looking for dominance.
 
"We're looking for partnerships. Others choose to behave differently."
He added: "We want these to be commercially available projects led by the American private sector."
 
It is claimed Imran Khan, set to be Pakistan's new Prime Minister, will seek a bailout as soon as he forms a government.
 
Pakistan's economy is currently struggling due to falling exports whilst rising oil prices make imports more expensive.
 
The country has foreign reserves of USD 9 billion, not enough to pay for imports over the coming months.
 
 

 
 

A Pakistani Finance Ministry official told The Times newspaper: "Pakistan desperately needs financial help and at the moment an IMF bailout is a possible option."
 
Meanwhile, Pompeo said he is looking forward to working with the new government of Pakistan.
 
"There's new leadership in Pakistan, and we welcome engagement with them in a way that we think will benefit each of our two countries," the US Secretary of State said.

 
 
 
 
 

Related Topics

 
 
 

Trending News & Articles

 Article
'Worse than prison': A rare look inside China's detention camps to 'brainwash' Muslims

ALMATY: Hour upon hour, day upon day, Omir Bekali and other detainees in far western China's new indoctrination camps had to disavow the...

Recently posted . 199K views . 1 min read
 

 Article
What The Shape Of Your Belly Button Says About Your Health

If you have payed attention to the belly buttons of people on the beach or the members of your family, you have probably noticed that they have different shapes and...

Recently posted . 8K views . 2 min read
 

 Article
Top 10 Horrifying Acts of Chemical Warfare and Gas Attacks

In this age of terror, there might be nothing more terrifying than the thought of an attack carried out with chemical weapons. We’ve all heard the horrific ...

Recently posted . 3K views . 4 min read
 

 Article
Top 10 Best Gym Equipment Brands in India 2018

Body fitness is one thing that everyone wants to maintain irrespective of age. Going to the gym and doing some great exercise always helps to maintain your body fit...

Recently posted . 3K views . 2 min read
 

 
 

More in Global

 Article
25 Things In A Relationship More Important Than Sex

The urge to be intimate fades away when the relationship is no longer new. But any couple can have a good, happy and positive life together even when those intimate...

Recently posted. 900 views . 1 min read
 

 Article
22 workers trapped after accident in Chinese coal mine

Beijing, 22 workers are trapped in a coal mine in China's northeastern Heilongjiang Province, the most recent mischance to hit the nation's mining industry....

Recently posted. 671 views . 5 min read
 

 Article
Thinking of hiring a virtual assistant? Beware, you may get intimidated by it

While virtual assistants have a host of benefits, a new study says that people may hesitate to seek help from them on tasks because they are afraid to sound fooli...

Recently posted. 732 views . 1 min read
 

 Video
I Was Trapped Underwater For 3 Days



Recently posted . 720 views
 

 Photo
Photos Where Reality Beats Photoshop



Recently posted . 1K views
 

 Reviews
The Best 5 Camping Tents in India 2018 – Reviews & Buying Guide



Recently posted . 1K views . 99 min read
 

 Article
Goodbye nostalgia? Obama’s popularity rating soars before he steps down

US President Barack Obama's prevalence rating has hit another high, a most recent survey has said, quite recently before the surveys to choose his successor at ...

Recently posted. 620 views . 9 min read
 

 Article
Kelly Catlin, 23-Year-Old Three-Time Cycling World Champ, Commits Suicide

Kelly Catlin was part of the US team pursuit squads that captured world titles in 2016, 2017 and 2018.

Recently posted. 691 views . 0 min read
 

 
 
 

   Prashnavali

  Thought of the Day

"Not all us can do great things. But we can do small things with great love."
Mother Teresa

Be the first one to comment on this story

Close
Post Comment
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST


ads
Back To Top