Pakistan News

US Blames China For Economic Woes In Pakistan

Written By Asia News International | Mumbai | Published:

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  • US said that it would review the Pakistan government's bailout plea from all angles including the position of debt in the country
  • IMF Managing Director, Christine Lagarde, confirmed that Pakistan has formally approached the funding organization seeking financial assistance, to address its economic challenges

The United States on October 12 reportedly held China responsible for economic challenges being faced by Pakistan. It said that it would review the Pakistan government's bailout plea from all angles including the position of debt in the country.

READ: India, China Need To "deepen Cooperation" To Fight Trade Protectionism

According to The News, US State Department spokesperson, Heather Nauert, during a press conference, said:

"We understand that Pakistan has formally requested assistance from the International Monetary Fund (IMF). In all cases, we examine that closely from all angles of it, including Pakistan's debt position, in evaluating any type of loan programme. 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 may be thought wouldn't be so tough to bail themselves out of, but has become increasingly tough."

READ: Pakistan Seeks Largest Loan Package From The International Monetary Fund: Report

IMF Managing Director Christine Lagarde on October 11 had confirmed that Pakistan has formally approached the funding organization seeking financial assistance, to address its economic challenges. Lagarde met Pakistan's Minister of Finance, Revenue and Economic Affairs, Asad Umar, Governor of the State Bank of Pakistan, Tariq Bajwa, and other members of their economic team.

Opening up about a visit of a team of the international body, Lagarde said: "An IMF team will visit Islamabad in the coming weeks to initiate discussions for a possible IMF-supported economic programme. We look forward to our continuing partnership," Lagarde added.

READ: China To Sell 48 High-End Armed Drones To Pakistan

Pakistan's economy has been in a limbo for long. It was already speculated that Pakistan would have to seek a loan package from IMF following the elections held on July 25.

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