‘IMF bailout for Pak will benefit China’, US charges infuriate Pakistan’s caretaker foreign minister

Islamabad, Aug 2: Pakistan's Caretaker Foreign Minister Abdullah Hussain Haroon on Wednesday, August 1, lashed out at the US over its claim that any bailout by the International Monetary Fund (IMF) the new government of Pakistan has to seek would be used to repay Chinese loans, APP reported.

Haroon said it was "totally wrong" to link the two things.

US Secretary of State Mike Pompeo has recently objected to the idea of an IMF bailout for Pakistan and made a specific reference to China saying the latter would be the end beneficiary.

Pompeo's concern over China allegedly benefitting from Pakistan's bailout could add to an already tense relationship between two of the world's largest economies, the report added.

The state secretary said the US will keep a watch on the IMF's next steps in response to reports that the South Asian state is planning to seek a bailout package of up to $12 billion to accomplish an economic recovery.

"There's no rationale for IMF tax dollars - and associated with that, American dollars that are part of the IMF funding - for those to go to bail out Chinese bondholders or China itself," the American diplomat was quoted as saying.

Haroon said the new government of Pakistan would have to take a call on whether to approach the international banking organisation amid fears of balance of payments crisis.

The new government of the country is set to take oath this month after Imran Khan's Pakistan Tahreek-e-Insaf (PTI) emerged as the largest party in the July 25 elections that were marred with controversy.