Pompeo warns against IMF bailout that pays off Chinese lenders

Published: July 31, 2018
Email
"Make no mistake. We will be watching what the IMF does," Pompeo said
PHOTO: AFP

"Make no mistake. We will be watching what the IMF does," Pompeo said PHOTO: AFP

WASHINGTON: US Secretary of State Mike Pompeo warned on Monday that any potential International Monetary Fund bailout (IMF) for Pakistan’s new government should not provide funds to pay off Chinese lenders.

In an interview with CNBC television, Pompeo said the United States looked forward to engagement with the new government of Pakistan’s expected new prime minister, Imran Khan, but said there was “no rationale” for a bailout that pays off Chinese loans to Pakistan.

No further extension in tax amnesty scheme: FBR

“Make no mistake. We will be watching what the IMF does,” Pompeo said.

“There’s no rationale for IMF tax dollars, and associated with that American dollars that are part of the IMF funding, for those to go to bail out Chinese bondholders or China itself,” Pompeo said.

US, Pakistan reiterate resolve to restore bilateral ties

Pakistan and United States reiterated their resolve on Tuesday to restore their bilateral relationship.

This was noted during a meeting between Pakistan’s Ambassador to the United States Ali Jahangir and US Secretary of Defence James Mattis at Pentagon in Washington.

Jahangir and Mattis discussed matters related to restoration of bilateral ties between the two countries, while regional security in South Asia also came up during the course of the meeting.

Facebook Conversations

Reader Comments (4)

  • Saad
    Jul 31, 2018 - 2:30PM

    This is designed to scare away further Chinese investment in Pakistan.Recommend

  • Zaida Parvez
    Jul 31, 2018 - 4:54PM

    China should be accepting Pakistani Rupee for trade. That will save forex. Recommend

  • numbersnumbers
    Jul 31, 2018 - 10:40PM

    Note that China has been supportive of third world countries defaulting on loans to other countries, but also believes that it would be wrong for any country doing the same to China.Recommend

  • candy
    Aug 1, 2018 - 1:57AM

    This only becomes an issue if Pakistan can’t repay the Chinese – but there’s the rub. CPEC gets lots of press – mostly positive and mostly from politicians – but NOBODY has ever disclosed the terms of CPEC or how it’s going to be repaid. That should worry everybody. Recommend

More in Business