ISLAMABAD – U.S Secretary of State Mike Pompeo had given an assurance toPakistan during his maiden visit to Islamabad which was in contrast to hisprevious statement.
Mike Pompeo had earlier said that the proposed IMF package for Pakistanwould not be allowed as it contained the dollars payback to China.
However Pompeo assured Pakistan last week Washington would not try to blockany request for a bailout from the International Monetary Fund (IMF),Pakistani Information Minister Fawad Chaudhry said on Tuesday.
The remarks, which Chaudhry said Pompeo made during his visit to Pakistanon Wednesday, come in stark contrast to Pompeo’s warnings in July that theUnited States had serious reservations about the IMF giving money toPakistan due to concerns Islamabad would use the cash to pay off Chineseloans.
Those comments rattled Islamabad, which is facing a currency crisis and mayhave no option but to turn again to the IMF for a rescue if staunch alliesChina and Saudi Arabia do not offer more loans to prop up its foreigncurrency reserves.
Chaudhry said that relations between United States and Pakistan were“broken” before Pompeo’s trip to Islamabad but the visit had “set manythings straight” and re-invigorated ties.
“He assured Pakistan that…if Pakistan opted to go to IMF for anyfinancial help, the USA will not oppose it,” Chaudhry said in the capital,Islamabad.
The U.S. embassy in Islamabad did not have any immediate comment.
The new government of Prime Minister Imran Khan, who took office in August,is trying to avert a currency crisis caused by a shortage of dollars in aneconomy hit by a ballooning current account deficit and dwindling foreigncurrency reserves.
Pakistani officials say they are discussing taking drastic measures toavert seeking a bailout from the IMF, which has come to Pakistan’s rescue14 times since 1980, including most recently in 2013.