Pakistan is on the verge of an economic collapse as the foreign reserves have plunged to alarming levels. The new government will have no option but to go to the International Monetary Fund (IMF) for a bailout package. But why has the US warned the IMF of giving a bailout package to Pakistan?
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Mike Pompeo, the US Secretary of State said on Monday that any package from the International Monetary Fund (IMF) given to Pakistan must not be for providing funds to pay off the Chinese lenders.
As reported by The Jerusalem Post, the US has reached out to the would-be Prime Minister of Pakistan, Imran Khan. The US had made it very clear that any bailout package from the IMF to pay off the Chinese lenders to Pakistan will not be acceptable.
Mike Pompeo said that the US will keep a close watch on the IMF and no bailout package should end up bailing out the bondholders from China. The IMF, however, explained that as of now the IMF has received no requests from Pakistan for the bailout package and no discussions on the same have been held.
China Hits Back At The US
A spokesperson from the Chinese Foreign Minister retaliated to the statements made by the US. The spokesperson stated that the International Monetary Fund has its own standards and operating rules while extending cooperation to other nations. The official told the media that IMF will handle the matter inappropriately. Without directly mentioning the US, the Chinese official hit back at the US interference and said that IMF can handle the matter well on its own.