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.
 
 

 
 
 
 
 

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
Tamil TV Actor Priyanka Found Hanging After Domestic Dispute with Husband

The matter came to light on Wednesday morning when the maid arrived at the 32-year-old actress's house and nobody answered the door.

Recently posted. 460 views . 0 min read
 

 Article
Perfect example on how literate need to be educated: Meenakashi Lekhi on Satya Nadella's remarks

Responding to a question by BuzzFeed on the CAA, Nadella was quoted as saying that what is happening in the country is "sad" and "just bad"....

Recently posted. 431 views . 1 min read
 

 Article
ISRO Offered Semi-Cryogenic Engine Technology for Human Capsule by Russian Roscosmos

The move has been disclosed by ISRO chairman, who revealed Russia and India's ongoing discussions to collaborate in space technology.

Recently posted. 552 views . 0 min read
 

 Video
Rainbow Mountains of Peru Are Stunning



Recently posted . 938 views
 

 Reviews
Leaseweb hosting review



Recently posted . 1K views . 67 min read
 

 Article
Why does it make sense to invest now in a buyers’ market?

Is this the correct time to purchase property? This is a typical question asked by most purchasers as land costs have been stagnant throughout the previous two year...

Recently posted. 674 views . 15 min read
 

 Article
After Bengal's "Rosogolla", Odisha's "Rasagola" Gets Recognition

Odisha Rasagola: Bengal had secured the GI tag for ''Banglar Rosogolla'' after a tug of war with Odisha since 2015 over the origin of the sweet.

Recently posted. 573 views . 1 min read
 

 
 
 

   Prashnavali

  Thought of the Day

“A book is a magical thing that lets you travel to faraway places without even leaving your chair.”
Anonymous

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