Pakistan Warns Back Trump Govt. Not To Worry About Their China Debt

Pakistan Tehreek-e-Insaf (PTI) leader Asad Umar, set to be the next finance minister, adviced to United States to think of their debt to China and not to worry about the same of Pakistan’s though his country is having a serious external debt problem.

Last week the Trump government cautioned International Monetary Fund not to make mistake with its financing programmes to Pakistan as the new government may utilize it paying off Chinese lenders against the investment in the strategic China-Pakistan Economic Corridor.

Umar added his country may seek a bailout of about $12 billion from the IMF or china to avert currency crisis and the China-Pakistan Economic Corridor (CPEC) China has pledged $57 billion in loans.

US Secretary of State Mike Pompeo was replying to media question that Pakistan is planning to seek USD 12 billion bailout package from the IMF.

Meanwhile, the IMF revealed no such request has yet been received from Pakistan and since 1980 the country has availed 14 of their financing programmes.

Officials of Trump administration have been lately against the wooing strategy of China to Pakistan and few other developing countries with so much debt. It is feared the Chinese are trying to gain influence over poorer states with the use of such loans and debt.

Explaining economic policy of the incoming government Umar said neither Pakistan Steel Mills nor Pakistan International Airlines will be privatized.

He added, “Currency alignment should be decided by the state (central) bank based on economic fundamentals, not by finance ministry based on political considerations. I don’t think the IMF wants free-float for Pakistan, it’s such a thin market.”