While IMF demands disclosure of Pakistan’s China debt, PM Imran Khan spends money he doesn’t have

Pakistan PM Imran Khan has now officially, sought help from International Monetary Fund to bail out the country from the economy with a ballooning trade deficit, ailing currency and dwindling foreign reserves, claim reports.

Initial reports suggest that Pakistan government will demand loans of worth $12 billion from IMF. It may be Pakistan’s toughest loans, as it has taken a dozen IMF programs but has failed to put in effect the reforms required, in all but one bailout package.

“The conditions associated with a loan will include some harsh measures and the government will have to be very prepared to explain why Pakistan has been forced to return to the IMF,” said a senior official in Pakistan government to Financial Times.

- Advertisement - - Article resumes -

IMF Managing Director has made it rather clear, that prerequisite for any loan to be granted to Pakistan, is that maintains transparency with regards to already taken loans from countries like China.

It suggests that Pakistan will have to disclose its all details regarding $62 billion investment from China, under One Belt One Road initiative.

Lagarde said an IMF team would visit the Pakistani capital of Islamabad in coming weeks to begin negotiating the terms.

The biggest threat it seems to loans are not from stringent norms of IMF, but from the USA, which has made it clear that it will not let IMF bailout countries stuck in debts by China.

US is the largest stakeholder in IMF and has greater say in loans sanctioned by it, although it does not have a veto. The USA has many-a-times accused China of indulging in ‘debt trap diplomacy’  with smaller countries like Pakistan.

US Secretary of State said it can’t let hard-earned money of IMF go to China, through countries like Pakistan.

All these come in the wake of fresh blow delivered to Pakistan after the Asia Pacific Group on Money Laundering (APGML) and Financial Action Task Force (FATF) asked Pakistan government to intensify actions against money laundering and terror financing. The country is already on the ‘grey list’ of FATF, if it further maintains inaction it can be further blacklisted, making it difficult for it to procure loans from IMF.

We had earlier reported that how Pakistan is easing its overwhelming debts, it had cancelled several projects of CPEC with China, worth $2 billion. It also has tried to cut its excess spendings in the country, but its far from being sufficient. It recently launched a populist housing scheme, in Pakistan is offering five million houses to people, which economists are terming as ‘austerity’.


Share This Post and Support:
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Most read articles recently

Nehru Gandhi family celebrates birthday in aeroplane

A Pulitzer Prize winning report on Priyanka Gandhi’s aeroplane trip by Mausambi Singh

Priyanka Gandhi took an IndiGo flight from Delhi to Lucknow, and it was a flight to remember.
Christian Michel documents: Rafale delayed because of Eurofighter lobbying and Sweden's Bofors 'leverage' over Gandhis?

Christian Michel documents: Rafale delayed because of Eurofighter lobbying and Sweden’s Bofors ‘leverage’ over Gandhis?

These documents that point towards the Gandhi family are secret notes about Eurofighter lobbying faxed by Christian Michel to Guido Haschke. 

Anti-BJP accounts on social media, including Huffpost, Scroll journalist, celebrate death of Manohar Parrikar

As the sad news of passing away of Goa Chief Minister Manohar Parrikar came in, social media was filled with condolence messages from people in every spectre of life, from politicians to celebrities to ordinary netizens, irrespective of their political affiliation. Manohar Parrikar was known for his simplicity and...

More than 70 vessels including INS Vikramaditya, nuclear submarines, battleships were deployed near Pakistan after Pulwama Attack: Indian Navy

Carrier Battle Group led by INS Vikramaditya, nuclear submarines and other battleships of Indian Navy were at the North Arabian Sea after the Pulwama attack
When Manohar Parrikar found $3 billion of our money lying forgotten in a US account

When Manohar Parrikar found $3 billion of our money lying forgotten in a US account

Defence Minister Manohar Parrikar had revealed that he had found $3 billion (or Rs 20,000 crore) of Govt of India money lying forgotten in a US account.

India Today uses the photo of a Hindu girl to highlight the high rate of child marriage among Muslims in Kerala

Recently a detergent brand was highly criticised by people for releasing a Hinduphobic advertisement targeting the festival of Holi.

Priyanka Gandhi Vadra: How Congress’ ‘masterstroke’ may have just been a damp squib

The first 50 days of her official induction in Congress have been quite disappointing to say the least
Sharad pawar claims the IAF conducted air strikes on his suggestion

The man who concocted a bomb blast for secularism claims the Balakot air strikes were done on his suggestion

Sharad Pawar said that PM Modi and Defence Minister were absent in the meeting in which he advised the security officials to take down the terror hideouts

Bhim Army pours scorn on Priyanka Gandhi Vadra

Priyanka Gandhi apparently is proving a disaster as Congress general secretary in-charge for east Uttar Pradesh
PM Modi continues his Main Bhi Chowkidar campaign on Twitter

Prime Minister Narendra Modi changes his Twitter name after many supporters started the trend

In continuation with his 'Main Bhi Chowkidar' campaign, PM Modi changes his Twitter display name by prefixing 'Chowkidar' to it

Latest articles

Connect with us

146,928FansLike
118,548FollowersFollow
29,382SubscribersSubscribe

Don't miss these


Share This Post and Support: