Charity Stops, Begging Bowl Snatched? US Now Goes After Proposed IMF Aid To Pakistan, Demands ‘Full Transparency’

The Trump administration is increasing pressure on Pakistan to clarify the details of the country’s Chinese debt, as per details revealed during a Congressional hearing on Wednesday (28 November), reports Firstpost.

US Lawmakers suspect that funds from a fresh International Monetary Fund (IMF) bailout could be misused by Pakistan to pay off past debt owed to Chinese banks.

"The IMF team just came back from Pakistan. One of the things we're pushing hard for is full transparency of the debt," Under Secretary of Treasury for International Affairs David Malpass revealed during a Congressional hearing.

Malpass was answering a question raised by Oregon Senator Jeff Merkley, who expressed concerns over Pakistan’s $62 billion debt to China. Pakistan is currently in talks with the IMF for a US$12 billion bailout and has asked the US not to block the bailout.

"Is that IMF money essentially going to help Pakistan repay Chinese banks? Why is that a good economic development strategy?" Merkley questioned.

Malpass stated that it was a challenge to find a viable programme for sustained economic growth in Pakistan which would ensure that Pakistan would be able to fund its previous debts and maintain its financial survival in the future.

He added that it was a recurring problem in many countries that the terms of Chinese loans were kept secret, sometimes hidden even from some sections of the borrowing countries’ governments.