US will eval­u­ate Pak IMF bailout re­quest on merit

The Financial Daily - - CONTINUATIONS -

WASH­ING­TON: The US will eval­u­ate on merit a bailout pack­age sought by Pak­istan from the In­ter­na­tional Mone­tary Fund (IMF), the State De­part­ment said.

"We un­der­stand that Pak­istan has for­mally re­quested as­sis­tance from the IMF. As we do in all cases, we will ex­am­ine closely all as­pects, in­clud­ing Pak­istan s debt po­si­tion, in eval­u­at­ing any loan pro­gram," a State De­part­ment Spokesper­son Heather Nauert said dur­ing brief­ing.

"This is some­thing that we've been track­ing fairly closely. 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. So - last ques­tion and then I've got to go," she said.

The spokesper­son was re­spond­ing to a ques­tion on the re­quest made by Pak­istan for a USD 8 bailout pack­age. The spokesper­son s com­ments came on a day when Pak­istan s Fi­nance Min­is­ter Asad Umar met with IMF Manag­ing Direc­tor Chris­tine La­garde in Nusa Dua, In­done­sia and for- mally sought a bailout from the global lender.

The US has the great­est in­flu­ence in the IMF s de­ci­sion­mak­ing process.

In July, Sec­re­tary of State Mike Pom­peo had in­di­cated that the US will re­view the bailout pack­age in view of the mas­sive Chi­nese debt on Pak­istan.

"Make no mis­take. We will be watch­ing what the IMF does," Pom­peo said. "There's no ra­tio­nale for IMF tax dol­lars, and as­so­ci­ated with that Amer­i­can dol­lars that are part of the IMF fund­ing, for those to go to bail out Chi­nese bond­hold­ers or China it­self," Pom­peo had told CNBC. - NNI

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