IMF bailout for Pakistan shouldn t aid China: Pompeo
The issue arises from Pakistan s dependence on China for infrastructure subsidies which have left Islamabad deeply indebted to Beijing. Pakistan reportedly plans to ask for $12 billion from the IMF but this has not been confirmed yet.
"Make no mistake. We will be watching what the IMF does " Pompeo told CNBC in an interview on Monday.
"There s no rationale for IMF tax dollars -- and associated with that American dollars that are part of the IMF funding -- for those to go to bail out Chinese bondholders or China itself."
Pakistan is grappling to avert a currency crisis making it the biggest challenge for the new government which is likely to take oath in August.
According to Dawn the Tehreek-e-Insaf s government of Imran Khan will immediately have to approach the IMF for what would be the country s 13th bailout from the fund.
Pompeo said that the US was looking forward to engagement with Pakistan s upcoming government but added that there was "no rationale" for a bailout that pays off Chinese loans to Pakistan Washington Examiner reported.
China has pledged $62 billion as part of the Belt and Road Initiative which Western officials regard as a "predatory" method of expanding its influence over poorer countries.
Beijing has already gained control over a port in Sri Lanka an island country that bestrides key international shipping lanes. It has invested in Pakistan s Gwadar Sea Port that could give the Chinese military access to another facility west of India.
"We aspire to a regional order -- independent nations that can defend their people and compete fairly in the international marketplace " Pompeo said during a speech on the Indo-Pacific region.
"We will help them. We will help them keep their people free from coercion or great power domination."
That was a clear rebuke of Chinese lending practices though Pompeo avoided mentioning the Communist power by name.
--IANS soni/ksk/sed
