China says IMF’s evaluation of Pakistan’s financial condition is OK if it won’t derail Sino-Pak ties

China says IMF’s evaluation of Pakistan’s financial condition is OK if it won’t derail Sino-Pak ties

Beijing, October 15 (Reuters): China has said that it supports the International Monetary Fund (IMF) in carrying out an objective and professional evaluation of Pakistan’s financial situation, adding that the relevant measures should not affect normal bilateral cooperation between China and Pakistan.

“As a member of the IMF, China supports this organisation in carrying out objective evaluation of Pakistan’s financial difficulties and assisting it in dealing with current difficulties and the relevant measures shall not affect the normal bilateral relations between the two countries,” Chinese Foreign Ministry’s spokesperson Lu Kang said during his regular press briefing on Monday.

While rejecting the impression that the loans under the China-Pakistan Economic Corridor (CPEC) were the cause of the current financial situation of Pakistan, he said, the Chinese side had explained many times that CPEC was undertaken by the two governments under the principle of consultations and contributions for shared benefits.

“All the projects and financing arrangements are made by the two sides on equal consultations,” he added. The spokesperson said, in fact, judging from the debt structure already released by the Pakistani government, the debt incurred from CPEC accounted for low proportion.

So, it was not the reason for Pakistan’s financial difficulties. Lu said the Chinese side would like to work with Pakistan to substantiate and expand CPEC projects and help Pakistan achieve development on its own strength.

US to examine Chinese debt before decision on IMF loan for Pakistan

When asked to comment that the IMF would be scrutinising the Chinese loans to Pakistan before taking any decision, he said, “For quite sometimes, there was a lot of discussion on Pakistan’s debt problems and its financial and economic difficulties. I just said, according to the debt structure released by the Pakistani government itself, the debt incurred through CPEC accounts for a low proportion. The relevant officials have also made it clear recently.”

The spokesperson reiterated that as a member of IMF, China supported this organisation in having cooperation with Pakistan and evaluating the situation on the ground objectively and professionally in Pakistan.

(The featured image at the top shows Lu Kang, the Chinese Foreign Ministry spokesman)