Pakistan

IMF bailout for Pakistan opposed by US Secretary of State Mike Pompeo

U.S. Secretary of State Mike Pompeo has criticized the idea of an International Monetary Fund (IMF) bailout for Pakistan, whose economy is on the brink of crisis. The remarks were specifically pointing to China and how it would benefit from such a deal.

In an exclusive interview with CNBC, he has issued some warning words over Chinese involvement in Pakistan, shedding light on what could be another growing point of contention between the world’s two largest economies.
“Make no mistake, we will be watching what the IMF does,” the diplomat said, in response to reports that Pakistan is planning to request a bailout package of up to $12 billion to shore up its depleted currency reserves and indebted economy.
“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.”
Washington has voiced its disapproval of growing Chinese involvement in Pakistan and other developing countries, accusing the world’s second-largest economy of overwhelming smaller countries with loans and being part of the problem rather than the solution.

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