Huge Chinese Debt Responsible for The Economic Challenges in Pakistan
Huge Chinese Debt Responsible for The Economic Challenges in Pakistan: United States early on Friday said that the huge Chinese debt responsible for the economic challenges in Pakistan, adding that it will review government’s bailout plea to the IMF from all angles, including the country’s debt position.
During a press conference,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,” adding this is something the United States has been tracking fairly closely.
Responding to a question, Nauert said; “The secretary had spoken about this a few months back, I know, in some interviews not that long ago. I think 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.”
The State Department response on Pakistan’s IMF bailout request appeared to be in sync with the statement made by IMF Managing Director Christine Lagarde.
The IMF’s Managing Director, Christine Lagarde, has confirmed that Pakistan has requested financial assistance from the IMF to help address the country’s economic challenges and the Fund would be sending its team to Islamabad in coming weeks to initiate discussions for possible package.
To a questions on this issue in Bali, Indonesia, Lagarde said she would require absolute transparency on Pakistan’s debts, including those owned by China.
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