*ISLAMABAD: Pakistan on Wednesday dismissed U.S. concerns that any newInternational Monetary Fund bailout for the South Asian nation would beused to repay Chinese debt as “totally wrong”.*

Pakistan´s economy has hit severe turbulence over the past year and mostanalysts expect the nuclear-armed nation to seek a bailout, either from theIMF or closest ally China, to avoid a currency crisis.

Beijing has pledged $57 billion in loans for Pakistan as part of China´svast Belt and Road initiative, deepening economic and diplomatic tiesbetween the neighbours at a time when relations between Islamabad andWashington are fraying.

U.S. Secretary of State Mike Pompeo on Monday warned that any potential IMFbailout for Pakistan´s incoming government should not provide funds to payoff Chinese lenders.

In response, Pakistan´s finance ministry sought to de-couple the linkbetween any potential IMF bailout and Beijing´s loans for theChina-Pakistan Economic Corridor (CPEC), which spans mostly energy andtransport infrastructure.

“First and foremost it is totally wrong to link the IMF package with CPEC.

It is affirmed that Pakistan Government is fully committed to undertake andcomplete CPEC projects in their totality,” the finance ministry said in astatement.

“Third parties cannot weaken our collective resolve to make CPEC a successstory.

“CPEC is billed as Pakistan´s most important national project, whileBeijing has touted CPEC as the “flagship” project in the vast Belt and Roadinitiative to build rail, road and maritime links across the globe.

Both countries are very sensitive of any criticism about CPEC.

The United States has been concerned that China is saddling smallercountries with debt as a way to gain influence and control around the globe.

Pakistan is struggling to avert a currency crisis that has presented thenew government with its biggest challenge.

Many analysts and business leaders expect that another IMF bailout, thesecond in five years, will be needed to plug an external financing gap.

“Make no mistake. We will be watching what the IMF does,” Pompeo said.

“There´s no rationale for IMF tax dollars, and associated with thatAmerican dollars that are part of the IMF funding, for those to go to bailout Chinese bondholders or China itself,” Pompeo added.