IMF Bailout package for Pakistan comes with a heavy price
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ISLAMABAD - Pakistan’s General Consul in Hong Kong Abdul Qadir Memon has warned that International Monetary Fund (IMF) bailout package would come with a heavy price.
IMF would impose strict restrictions upon Pakistan and heavy tax burden would also be imposed on general public.
Further more PTI government would also not be able to implement it's reforms agenda.
He further said that IMF bailout package if any would not be used to repay its debt to China and would rather use them to continue financing its imports.
According to a report in *Nikkei Asian Review, *Mr Memon was responding to a question-and-answer session following a speech at the Foreign Correspondents Club in Hong Kong.
He said, “If the U.S. “vehemently” objects to an IMF bailout, we are going to convince them that this money will not go to China. It will go to balance our external accounts so that we are able to sustain our imports for the next year or so.”
Mr Memon rebuffed assertions the Belt and Road Initiative (BRI) was to be blamed for the country’s financial crunch and the assumption it would approach the IMF to repay Chinese loans.
“The balance of payments difficulties for Pakistan is because of high oil prices,” added Pakistan’s Consul in Hong Kong.
However, Mr Memon warned any IMF bailout would come attached with strict conditions which could harm the government’s ability to execute policies if it agrees to the terms.
Furthermore, the government is exploring its options and it “may opt for other resources, and [the] People’s Republic of China, Saudi Arabia — in the past we had this deferred payment imports of oil,” said Memon.
China had exhibited flexibility in its negotiations with Pakistan regarding terms and conditions of loans obtained, said Pakistan’s General Consul in Hong Kong.
Mr Memon observed, “The payback period is longer, and Pakistan has no history of default.”
