ISLAMABAD – The International Monetary Fund (IMF) has responded over therumours of denying A bailout package to Pakistan under US pressure.
IMF, in a meeting with brokerage houses, has ruled out the possibility thatit would deny Pakistan a bailout package under US influence.
“The IMF said it is ready to enter into discussion with Pakistan for a[possible] bailout package,” an economist of a leading securities brokeragehouse said after attending the meeting with IMF Resident RepresentativeTeresa Daban Sanchez.
Another brokerage house economist said the meeting highlighted the limitedvoting power of the US (16.7%) for approving or disapproving Pakistan’spotential request to the IMF Executive Board for a new programme.
IMF, finance ministry way off on Pakistan’s economic miseryReplying to a question, Sanchez said the objective of establishing the IMFwas to help nations come out of financial crisis so that the global economykept on advancing.
“This is not possible, a patient is dying and doctors will not make effortsto save him,” a meeting participant quoted Sanchez as saying.“The US may, however, influence the conditions on which loan may be givenand the two sides [Pakistan and the IMF] may disagree on the conditions,”he said.
According to a news report, 16 US senators have urged the Trumpadministration to block the IMF from bailing out countries that haveacquired loans from China under its global infrastructure developmentprogramme called the Belt and Road Initiative (BRI). Such countries lackedthe capacity to return the loan, they said.
Pakistan is one of the countries developing infrastructure in associationwith China under the BRI.