WASHINGTON – United States is likely to oppose Pakistan bailout packagewith IMF if it is used to repay Chinese loans.

The US is making all efforts to ensure that any IMF bailout to Pakistan isnot used to repay its Chinese debts, a senior Trump administration officialhas told lawmakers.

Cash-strapped Pakistan is seeking USD 8 billion from the InternationalMonetary Fund (IMF) to bail itself out from a severe balance-of-paymentscrisis that threatens to cripple the country’s economy.

A recent meeting between the IMF and Pakistan ended in a stalemate.

The US feels that the huge Chinese debt was responsible for the economicchallenges in Pakistan.

“We are working and making clear within the IMF that if it were going tosupply any funding to Pakistan that it would not be used to repay Chineseloans,” David Malpass, Under Secretary of Treasury for InternationalAffairs, told lawmakers during a Congressional hearing on Wednesday.

There are concerns among American lawmakers that the IMF money could beused to repay Chinese debt.

Malpass said that the US is also trying to make sure that Pakistan changesits economic programme so that it’s not a failure in the future.

During the House Financial Services Committee hearing on ‘Evaluating theEffectiveness of the International Financial Institutions’ Congressman EdRoyce said Pakistan is currently seeking a multibillion-dollar IMF bailout.

“In July, Secretary (of State, Mike) Pompeo said there’s no rationale forIMF tax dollars and those associated with American dollars that are part ofIMF funding for those to go to bailout Chinese bond holders or Chinaitself,” he said.