ISLAMABAD – Three influential US lawmakers have urged the Trumpadminstration to oppose the proposed multi-billion bailout package beingsought by Pakistan from International Monetary Fund (IMF) arguing it couldbe used to repay the Chinese debt.
In a letter to Treasury Secretary Steven Mnuchin and Secretary of StateMike Pompeo, the bipartisan group of three lawmakers Ted Yoho, Ami Bera andGeorge Holding expressed their “deep concern” over the likely use of IMF’sbailout package to repay the massive Chinese debt that Pakistan hasaccumulated under China Pakistan Economic Corridor (CPEC).
“We write to express our deep concern over attempts made by the Governmentof Pakistan to seek a bailout deal with the International Monetary Fund toretrieve debts incurred from predatory Chinese infrastructure projects,”the Congressmen said in a letter dated April 5.
China, they said, is investing USD 62 billion in Pakistan under CPEC. “Itsdebt repayment and profit repatriation terms are not transparent and haveunderstandably raised concerns inside Pakistan, they said.
“Illustrative of the dangers of China’s debt-trap diplomacy, Sri Lankabecame unable to make payments on the Chinese debt it had taken for theHambantota Port development Project,” the letter said. Under “heavypressure” from China, Sri Lanka ultimately handed over 1,500 acres of landaround the port for a 99-year lease, they said.
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“The impact of Chinese predatory financing in Pakistan, as already seen inthe case of the Hambantota port in Sri Lanka, cannot be ruled out, theletter said.
Asserting that there is a “critical need for transparency in projectsincluding loan terms and contractual details, the Congressmen said “unlessthe terms are subjected to strict scrutiny” the Islamabad may use the IMFbailout package to repay Pakistan’s debt obligations to China.
