Connect with us

Featured

US to Block IMF Bailout Package to Pakistan, Djibouti Over China Debt Trap

Published

on

The US might move soon to block the much needed IMF bailout for Pakistan. Reportedly 16 US Senators have requested Donald Trump to oppose IMF bailouts to all nations which have received loans from Beijing under China’s One Belt One Road initiative. This could badly impact Islamabad which is reeling under an economic crisis and foreign reserves continue to plunge. The letter written to Mike Pompeo by the US Senators mentions Pakistan, China and Djibouti.

As reported by The News, the nations mentioned in the letters written to the US Secretary of State and Treasury Secretary mentions the nations which have received loans worth billions of dollars under infrastructure projects undertaken on their land by China under the OBOR initiative of Beijing.

The new government being formed in Pakistan has high hopes from the IMF to bail out the nation which stands on the brink of a major economic crisis. Pakistan has received massive loans worth $62 billion from China under the China Pakistan Economic Corridor and the US has expressed frequent concerns about the IMF bailout package being used to pay Chinese lenders.

The rising current account deficit makes an IMF bailout very important for Pakistan but the US Senators are keen to keep Pakistan deprived of any help from the International Monetary Fund. The letter written by the US Senators highlight the debt trap diplomacy of China and the national security threats posed by China’s Belt and Road Initiative in developing nations.

As per the Centre for Global Development, 68 countries are home to China’s BRI funding projects. 23 out of these 68 nations are vulnerable to being caught in debt distress while 8 countries could be staring at sovereign debt sustainability concerns in near future. The letter also underlined the fact that China has ignored standards and disciplines while acting as a lender to these nations including Pakistan.

Ae mentioned in the letter, China has lent $1.4 billion to Djibouti which makes up to 75 per cent of the GDP of Djibouti. The letter also mentioned that on 2016 the IMF agreed to provide a bailout package worth $1.5 billion to Sri Lanka because of unsustainable debts to China.

To help the economy of Pakistan which is presently amid a chaos will be the top challenges for Imran Khan when he takes the oath. These are testing times for Pakistan and the IMF bailout is the only hope of revival.

More News at EurAsian Times

Advertisement
Advertisement

Facebook

FEATURED

Sargsian-Armenia Sargsian-Armenia
Expert Reviews8 hours ago

Armenia-Azerbaijan Conflict: Why Armenia Needs To Pull-Out From Occupied-Regions Of Azerbaijan: OPED

The Armenia-Azerbaijan Upper-Karabakh conflict was sparked with the open territorial claims of Armenians to Azerbaijan's historical lands, as well as ethnic provocations in...

AMCA-DRDO AMCA-DRDO
Featured8 hours ago

Indian 5th-Gen Aircraft To Be Fast-Tracked As DRDO, French Tech Giant Safran Set To Join Hands

As India looks to build its future fifth-generation fighter within its national boundaries, the country’s Defence Research and Development Organisation...

rafale-jets rafale-jets
Europe9 hours ago

4.5 Gen Rafale Fighter Jets Find A Freakish Challenger In Ageing Italian AV-8B Harriers

With Greece set to receive its Dassault Rafale fighter jets from France, Turkey has also been beefing up its defence...

Capital-of-Israel-Jerusalem Capital-of-Israel-Jerusalem
Featured12 hours ago

How Sworn Enemies Pakistan & Israel Are Supporting Azerbaijan While Armenia Gets Russian & Indian Backing?

The tensions between Azerbaijan and Armenia are at its peak with deadly attacks that shook the Armenian-controlled Karabakh in the...

F-35-INDIA F-35-INDIA
Americas22 hours ago

Not F-35 Jets or F-22 Raptors, This Is The World’s 1st Stealth Aircraft & Still The Fastest Ever

The United States along with Russia are front-runners when it comes to devising modern technology and blending it with state-of-the-art...

INDIA-CHINA INDIA-CHINA
Asia Pacific1 day ago

China Could Soon Deploy ‘Unmanned Helicopters’ In Ladakh As Tensions Mount With India

With the diplomatic and military talks in progress between the high ranking officials of New Delhi and Beijing, Indian and...

Capital-of-Israel-Jerusalem Capital-of-Israel-Jerusalem
Featured1 day ago

Three Islamic Countries That May Never Recognize Israel Despite The Acceptance Of Saudi Arabia?

In the wake of the ongoing developments, when clouds of war are hovering over India and China / Pakistan, perhaps...

missile missile
Featured1 day ago

Russian & Israeli Origin Missiles Deployed In Ladakh As India Looks To Keep China At Bay

Amid heightening tensions in Eastern Ladakh with China, India has reportedly deployed BrahMos and Nirbhay cruise missiles along with Akash...

C-17-GLOBEMASTER C-17-GLOBEMASTER
Expert Reviews1 day ago

Not Rafale Jets, But C-17 Globemasters Will Be The Real ‘Game Changer’ In India-China Clash At Ladakh

With neither of the two neighbours India or China ready to put their sword down, Ladakh continues to become a...

BALOCHISTAN BALOCHISTAN
Featured1 day ago

Afghan Peace Talks: Afghanistan’s Chief Peace Negotiator Lands In Pakistan

Afghan Peace Talks: Abdullah Abdullah will meet Pakistan’s President Arif Alvi, Prime Minister Imran Khan, Foreign Minister Shah Mehmood Qureshi,...

Advertisement