No IMF money to Pakistan to repay Chinese debt: US : The Tribune India

Join Whatsapp Channel

No IMF money to Pakistan to repay Chinese debt: US

WASHINGTON: The Trump administration is making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt, a US official told lawmakers on Wednesday.



Washington, December 13

The Trump administration is making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt, a US official told lawmakers on Wednesday.

Pakistan is seeking USD 8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country’s economy.

A recent meeting between the IMF and Pakistan ended in a stalemate.

The US feels the huge Chinese debt was responsible for the economic challenges in Pakistan. 

“We are working and making clear within the IMF that if it were going to supply any funding to Pakistan that it would not be used to repay Chinese loans,” David Malpass, Under Secretary of Treasury for International Affairs, told lawmakers during a Congressional hearing.

There are concerns among American lawmakers that the IMF money could be used to repay Chinese debt.

Malpass said the US is also trying to make sure that Pakistan changes its economic programme so that it’s not a failure in the future.

During the House Financial Services Committee hearing on ‘Evaluating the Effectiveness of the International Financial Institutions’ Congressman Ed Royce said Pakistan is currently seeking a multibillion-dollar IMF bailout.

“In July, Secretary (of State, Mike) Pompeo said there’s no rationale for IMF tax dollars and those associated with American dollars that are part of IMF funding for those to go to bailout Chinese bond holders or China itself,” he said.

“We will make strong efforts, and I believe successful efforts, to make sure that what you describe doesn’t happen, meaning a payoff of Beijing via Islamabad,” Malpass said. 

Malpass said IMF loans tended to be shorter maturity loans and China’s loans to Pakistan had been longer maturity loans. PTI

Top News

Arvind Kejriwal to be produced before Delhi court today as 6-day ED custody ends

Excise policy case: Delhi court extends ED custody of Chief Minister Arvind Kejriwal till April 1

In his submissions, Kejriwal said, ‘I am named by 4 witnesse...

Delhi High Court dismisses PIL to remove Arvind Kejriwal from CM post after arrest

Delhi High Court dismisses PIL to remove Arvind Kejriwal from CM post after arrest

The bench refuses to comment on merits of the issue, saying ...

‘Unwarranted, unacceptable’: India on US remarks on Delhi CM Arvind Kejriwal’s arrest

‘Unwarranted, unacceptable’: India on US remarks on Delhi CM Arvind Kejriwal’s arrest

MEA spokesperson says India is proud of its independent and ...

Bullying Congress culture, no wonder being rejected: PM Modi, backs senior lawyers who flagged attempts to undermine public trust in judiciary

Bullying Congress culture, no wonder being rejected: PM Modi

Backs senior lawyers who flagged attempts to undermine publi...

Gujarat court sentences former IPS officer Sanjiv Bhatt to 20 years in jail in 1996 drug case

Gujarat court sentences former IPS officer Sanjiv Bhatt to 20 years in jail in 1996 drug case

Bhatt, who was sacked from the force in 2015, is already beh...


Cities

View All