Washington: Three influential US lawmakers have urged the US govt to oppose the proposed multi-billion bailout package being sought by Pakistan from International Monetary Fund (IMF) arguing it could be used to repay the Chinese debt.
In a letter to Treasury Secretary Steven Mnuchin and Secy of State Mike Pompeo, the bipartisan group of three lawmakers – Ted Yoho, Ami Bera and George Holding – expressed their “deep concern” over the likely use of IMF’s bailout package to repay the massive Chinese debt that Pakistan has accumulated under China Pakistan Economic Corridor (CPEC).
“We write to express our deep concern over attempts by the Govt of Pak to seek a bailout deal with the IMF to retrieve debts incurred from predatory Chinese infrastructure projects,” the Congressmen said in a letter dated April 5. China, they said, is investing $62 billion in Pakistan under CPEC. “Its debt repayment and profit repatriation terms are not transparent and have understandably raised concerns inside Pakistan,” they 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. Under “heavy pressure” from the China, Sri Lanka ultimately handed over 1,500 acres of land around the port for a 99-year lease, they said.
“The impact of Chinese predatory financing in Pakistan, as already seen in the case of the Hambantota port in Sri Lanka, cannot be ruled out,” it said.
