IMF loan to pay off Chinese debts? US puts ‘dampener’ on Pakistan plans
After questioning the equity of the not too long ago held elections in Pakistan, america has fired one more salvo with Secretary of State Mike Pompeo warning towards any bailout package deal for the nation from the Worldwide Financial Fund (IMF) which might then be probably utilized by Pakistan to repay Chinese language money owed.
In an interview to CNBC, Pompeo stated the US is monitoring developments that would happen this month associated to Pakistan approaching IMF. “Make no mistake, we will likely be watching what the IMF does. There is no rationale for IMF tax — and related to that, American which can be a part of the IMF funding — to bail out Chinese language bondholders or China itself,” he stated.
Whereas the brand new authorities in Pakistan – set to take oath on August 11 – is prone to cosy as much as China, it’s also in dire want of a monetary bailout package deal. Many count on the Imran Khan-led authorities to strategy IMF instantly after formally coming to energy. The nation has already acquired 12 bailout packages from IMF thus far.
Pakistan-based Daybreak stories that in case IMF shuts its doorways, the nation might should additional lean on China to borrow much-needed funds. There are already stories in Pakistani media that China has agreed to pour in additional international change – over and above CPEC funding.
And whereas Pakistan-China relations might additional strengthen, Pompeo’s statements strongly sign – but once more – that relations between the US and Pakistan are near all-time low and unlikely to revive within the foreseeable future.