US Congressmen Speak Against IMF Bailout to Pakistan to Repay Chinese Debt

by Wadsam | April 9, 2019 6:34 pm

A number of US lawmakers have voiced their concerns over the multi-billion bailout package that Pakistan has sought from the International Monetary Fund (IMF) to repay the “Chinese debt” accumulated under China Pakistan Economic Corridor (CPEC).

In a letter to the Trump administration, the congressmen have urged to oppose this move asserting that there is a “critical need for transparency in projects” including loan terms and contractual details.

Ted Yoho, Ami Bera and George Holding said in the letter: “We write to express our deep concern over attempts made by the government of Pakistan to seek a bailout deal with the IMF to retrieve debts incurred from predatory Chinese infrastructure projects.”

The congressmen called on the US government to stop China’s attempts to hold “hostage countries that are unable to repay unfavorable loans” in a bid to expand their geostrategic goals.

“[China’s] debt repayment and profit repatriation terms are not transparent and has understanbdly raised concerns inside Pakistan,” the letter said.

“Illustrative of the dangers of China’s debt-trap diplomacy, Sri Lanka became unable to make payments on the Chinese debt it had taken for the Hambantota Port development project,” the letter said.

The lawmakers claimed that Pakistan has historically failed to carry out necessary structural economic problems after a receiving a dozen of different IMF bailout programs in the past 30 years.

“Another bailout that fails to provide transparency and address issues of balance of payment, high fiscal deficit, and unsustainable debt will again be doomed to fail, instead enriching China,” the three Congressment warned.

Source URL: https://wadsam.com/international-business-news/us-congressmen-speak-against-imf-bailout-to-pakistan-to-repay-chinese-debt/