Pak will use IMF money to pay off China loans

Pak will use IMF money to pay off China loans

Agency News

Washington, Nov 29 : The US Treasury Department has informed Congress that Pakistan will pay off an International Monetary Fund (IMF) bailout before its loans from China become due.

“We think the maturity of the Chinese debt comes after the IMF would have been repaid,” the Treasury’s undersecretary for international affairs, David Malpass, told a US Senate Foreign Relations subcommittee on Tuesday.

“From the standpoint of IMF money being used to pay Chinese money,” that was not the main US concern, he said.

“A challenge is to find the programme that would cause a substantial economic reform in Pakistan” and allow it to “survive the financial terms” attached to it.

The assurance from a senior US Treasury official eases concerns that Pak¬istan may use the IMF loan to repay China and Chinese banks. (UNI)