China supports Pakistan’s IMF bailout

News Desk

Following Pakistan’s formal application for aid from the IMF, China has expressed its support of Pakistan for addressing its economic challenges.

The Chinese Foreign Ministry spokesperson, Lu Kang, expressed his country’s stance by saying that as a member of the IMF, China would support them making a financial evaluation of Pakistan based on professionalism and a committed desire to address Pakistan’s current economic situation.

Perceptions about Pakistan’s second bailout from the IMF in five years are mixed amongst Pakistan’s allies. The US has expressed concern about Pakistan’s debt to China due to the CPEC project, and will have significant influence on the IMF’s decision to grant the package.

State Department spokesperson Heather Nauert had stated that Pakistan’s debt crises was partly because of its alliance with China and the “Chinese debt”. Secretary of State Mike Pompeo has seconded that stance, even claiming that the IMF package would benefit China.

The Chinese spokesperson has rejected these claims and said that the debt from CPEC makes up a small portion of Pakistan’s debt crises and could not be blamed for the debt entirely. China also holds a powerful position in the IMF coming at number three following the United States and Japan, so its influence is likely to benefit Pakistan’s aid request.

The IMF is evaluating it conditions on the latest IMF package which is said to be around $12 billion under Prime Minister Imran Khan’s leadership.

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