The United States said it would look at Pakistan’s request for IMF bailout from all angles, including the country’s debt position, as it appeared to have held China’s huge debt to itself.
“We understand that Pakistan has formally requested assistance from the International Monetary Fund (IMF). In any case, we take a close look at it from all angles, including Pakistan’s debt situation, to assess everything type of loan program, “said Heather, a spokesperson for the State Department. Nauert told reporters at a press conference on Thursday, which the United States is watching very closely.
“The secretary talked about it a few months ago, I know, in some interviews not so long ago. I think one of the reasons Pakistan got into this situation is China’s debt, and the fact that governments have a debt. incurred that they thought maybe it wouldn’t be that hard to get out of it, but just got harder and harder, “Nauert said in response to a question. .
The State Department’s response to Pakistan’s request for an IMF bailout appears to be in line with the statement by IMF Managing Director Christine Lagarde.
Responding to questions on this issue in Bali, Indonesia, Lagarde said she would demand absolute transparency on Pakistan’s debts, including those belonging to China.
“Whatever work we do, we must have full understanding and absolute transparency about the nature, size and terms of the debt that weighs on a particular country,” she said.
“To truly understand the magnitude and composition of this debt, both in terms of sovereign debt, in terms of state-owned enterprises and others, so that we can truly assess and determine the sustainability of this country’s debt,” if and when we consider a program, said Lagarde.