Skip to main content

US eases fears Pakistan will use IMF loans to clear China debt

Anwar IqbalUpdated November 29, 2018

The US Treasury Department has informed Congress that Pakistan will pay off an International Monetary Fund (IMF) bailout before its loans from China become due. — AFP/File photo

WASHINGTON: The US Treasury Department has informed Congress that Pakistan will pay off an International Monetary Fund (IMF) bailout before its loans from China become due.

✔“We think the maturity of the Chinese debt comes after the IMF would have been repaid,” the Treasury’s undersecretary for international affairs, David Malpass, told a US Senate Foreign Relations subcommittee on Tuesday.

“From the standpoint of IMF money being used to pay Chinese money,” that was not the main US concern, he said. “A challenge is to find the programme that would cause a substantial economic reform in Pakistan” and allow it to “survive the financial terms” attached to it.

The assurance from a senior US Treasury official eases concerns that Pak­istan may use the IMF loan to repay China and Chinese banks.


While informing the panel that an IMF team had just returned from Pakistan after talks on a possible bailout package, 📌Malpass also gave a rare insight into the negotiations.

One of the things we are pushing hard for is full transparency of the debt,” he said. “One of the challenges is that ... in many cases they haven’t disclosed the terms of the debt — that means the interest rates, the maturity, and when it would have to be repaid,” he said.

US, he said, was “pushing back on very hard” to change this practice and had raised its concern at various international financial platforms. Pakistan is negotiating with the IMF the terms of its second bailout since 2013, a loan package valued at somewhere between $6 billion to $12 billion — according to reports in the Pakistani and international media. Pakistan expects the deal to be finalised by mid January.

Finance Minister Asad Umar, however, told reporters on Wednesday that Pakistan was no more in a rush to finalise the deal as it can now afford a two-month delay. “We aren’t in hurry,” he said. “We are covered even if it delays for two months.”

Published in Dawn, November 29th, 2018

Download the new Dawn mobile app here:


Popular posts from this blog

SSG Commando Muddassir Iqbal of Pakistan Army

“ Commando Muddassir Iqbal was part of the team who conducted Army Public School operation on 16 December 2014. In this video he reveals that he along with other commandos was ordered to kill the innocent children inside school, when asked why should they kill children after killing all the terrorist he was told that it would be a chance to defame Taliban and get nation on the side. He and all other commandos killed children and later Taliban was blamed.
Muddassir Iqbal has deserted the military and now he is  with mujahedeen somewhere in AF PAK border area”
For authenticity of  this tape journalists can easy reach to his home town to interview his family members or   ISPR as he reveals his army service number”
Asalam o Alaikum: My name is Muddassir Iqbal. My father’s name is Naimat Ali. I belong to Sialkot divison (Punjab province), my village is Shamsher Poor and district, tehsil and post office  Narowal. Unfortunately I was working in Pakistan army. I feel embarrassed to tell you …

CPEC Jobs in Pakistan, salary details

JOBS...نوکریاں چائنہ کمپنی میںPlease help the deserving persons...Salary:Salary package in China–Pakistan Economic Corridor (CPEC) in these 300,000 jobs shall be on daily wages. The details of the daily wages are as follows;Welder: Rs. 1,700 dailyHeavy Duty Driver: Rs. 1,700 dailyMason: Rs. 1,500 dailyHelper: Rs. 850 dailyElectrician: Rs. 1,700 dailySurveyor: Rs. 2,500 dailySecurity Guard: Rs. 1,600 dailyBulldozer operator: Rs. 2,200 dailyConcrete mixer machine operator: Rs. 2,000 dailyRoller operator: Rs. 2,000 dailySteel fixer: Rs. 2,200 dailyIron Shuttering fixer: Rs. 1,800 dailyAccount clerk: Rs. 2,200 dailyCarpenter: Rs. 1,700 dailyLight duty driver: Rs. 1,700 dailyLabour: Rs. 900 dailyPara Engine mechanic: Rs. 1,700 dailyPipe fitter: Rs. 1,700 dailyStorekeeper: Rs. 1,700 dailyOffice boy: Rs. 1,200 dailyExcavator operator: Rs. 2,200 dailyShovel operator: Rs. 2,200 dailyComputer operator: Rs. 2,200 dailySecurity Supervisor: Rs. 2,200 dailyCook for Chinese food: Rs. 2,000 dailyCook…

A ‘European Silk Road’

publication_iconPhilipp HeimbergerMario Holznerand Artem Kochnevwiiw Research Report No. 430, August 2018 
43 pages including 10 Tables and 17 FiguresFREE DOWNLOAD
The German version can be found here.In this study we argue for a ‘Big Push’ in infrastructure investments in greater Europe. We propose the building of a European Silk Road, which connects the industrial centres in the west with the populous, but less developed regions in the east of the continent and thereby is meant to generate more growth and employment in the short term as well as in the medium and long term.After its completion, the European Silk Road would extend overland around 11,000 kilometres on a northern route from Lisbon to Uralsk on the Russian-Kazakh border and on a southern route from Milan to Volgograd and Baku. Central parts are the route from Lyon to Moscow in the north and from Milan to Constanţa in the south. The southern route would link Central Europe with the Black Sea area and the Caspian Sea litto…