International Monetary Fund asks Pakistan to share details of loans from China
According to the Express Tribune, IMF, during a recent meeting, voiced concern about Beijing's financial assistance to Islamabad
Islamabad: International Monetary Fund (IMF), who is currently considering a bailout package for Pakistan, has asked the latter to share details of loans that it has received from China. According to the Express Tribune, IMF, during a recent meeting, voiced concern about Beijing's financial assistance to Islamabad.
However, Pakistan assured the IMF that there is no overlapping between the two programmes (IMF bailout and CPEC), reported Dawn. Pakistan Finance Minister Asad Umar has said that Pakistan and the IMF will reach a full agreement in the coming days. "During the last two days, we have, more or less, reached an understanding. In the next day or two, we hope to reach a full agreement and then we will share the details with you," the finance minister said after a meeting with World Bank Group President David R Malpass and senior officials of IMF.
In the past few years, Pakistan and China have signed about half a dozen projects of worth USD 6.2 billion under CPEC. Besides this, it has also granted commercial loans worth USD 6.5 billion. China has also deposited USD 2 billion in State Bank of Pakistan. In October last year, Pakistan had formally requested the IMF for yet another economic assistance package.
The South-Asian nation is going through an economic crisis after the United States decided to cut off the financial aid to the country in the view of terrorist attacks. The US views Pakistan as a safe haven for terrorists and insurgents, responsible for the 17-year-old war going on in neighbouring Afghanistan.
Pentagon, in September, had reportedly cut off aid worth USD 300 million due to growing concerns regarding Islamabad's failure to tackle the militants. In August, the US had also slashed security-oriented financial aid to Pakistan. Pakistan, however, has sought help from several countries including Saudi Arabia and China as its economy has been in limbo for a long time. It secured loans up to USD 6 billion from Saudi Arabia on the sidelines of the Future Investment Initiative conference in Riyadh in October. Islamabad has been seeking commercial loans of USD 2 billion from Beijing. China has already refused to provide balance of payment (BoP) support to Pakistan.
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