No IMF money to Pakistan to repay Chinese debt, says US

WASHINGTON/ISLAMABAD: The US has reiterated that it will not allow Pakistan to use a bailout package it has sought from the IMF to pay off Chinese loans.

Washington also said it is trying to change Pakistan’s economic programme to ensure it is “not a failure in the future”.

Pakistan has used over a dozen IMF programmes over the past and sought a fresh bailout package of $12 billion in October to deal with spiralling external debt.

It has also sought, and received, loans from friendly countries such as Saudi Arabia.

“We are making it clear to the IMF that if it were going to supply any funding to Pakistan, it would not be used to repay Chinese loans,” David Malpass, a senior US treasury department official, told lawmakers at a hearing of the financial services committee of the US House of Representatives on Wednesday.

Malpass said he was echoing the words of secretary of state Mike Pompeo, who said in July, “Make no mistake. We will be watching what the IMF does.”

PAK HAILS INVESTMENT FROM SAUDI ARABIA

Saudi Arabia is set to make an investment in Pakistan that promises to be the largest ever in the country, a minister said on Thursday.

“The ball is in our court. We have to get cabinet approval next week, after which an announcement will be made,” Pakistan’s finance minister Asad Umar said at an event in Islamabad.

Umar claimed he was getting messages from Saudi Crown Prince Mohammad Bin Salman to “hurry up” as the approval was being awaited.