October 12, 2018 (MLN): The United States has alleged that the economic calamity in Pakistan is a result of enormous Chinese debt, adding that it will evaluate government's bailout appeal to the IMF from all angles, including the country's debt position.
The State Department spokesperson Heather Nauert said “We understand that Pakistan has formally requested assistance from the International Monetary Fund (IMF). In all cases, we examine that closely from all angles of it, including Pakistan's debt position, in evaluating any type of loan programme.”
“Part of the reason that Pakistan found itself in this situation is Chinese debt, and the fact that there is debt that governments have incurred that they maybe thought wouldn't be so tough to bail themselves out of, but has become increasingly tough,” he added.
Chinese officials have rebuffed criticism that China-Pakistan Economic Corridor projects have burdened Pakistan with unsustainable debts.
The Chinese believe that they have in fact boosted the country’s economic growth and provided thousands of jobs through the projects.
The IMF’s Managing Director, Christine Lagarde recently confirmed Pakistan’s request for financial assistance from the IMF to help address the country’s economic crisis.
The International Monetary Fund would be sending a team to Islamabad in coming weeks to initiate discussions for possible package.
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