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

09 Apr 2019 Wadsam Afghanistan Business News

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.

The post US Congressmen Speak Against IMF Bailout to Pakistan to Repay Chinese Debt appeared first on Wadsam.

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

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