US Warns IMF Over Pakistan May Divert Fund To Repay Chinese Loan

July 31, 2018 11:39 pm8 commentsViews: 49

United States 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.

US Secretary of State Mike Pompeo said, “Make no mistake, we will be watching what the IMF does.”

Pompeo was replying to the question raised in an interview by CNBC 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.

It is learned Pakistan is in need of about USD 3 billion in near future to overcome defaulting of loans from China, World Bank and IMF. Presently the country has about USD 5 billion worth of loans from Chinese lenders.

Much of the borrowed fund have been used in infrastructure projects under USD 50 CPEC like infrastructure connecting Xinjiang province of China with Gwadar port in the Balochistan province.

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.

Pompeo criticized China’s words that they are not looking for dominance but looking for partnership.

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