• Tuesday, June 25, 2019

‘US wants to help Pakistan protect its economy’

Discussion in 'Strategic & Foreign Affairs' started by kahonapyarhai, Dec 14, 2018.

  1. kahonapyarhai

    kahonapyarhai SENIOR MEMBER

    Messages:
    7,109
    Joined:
    Sep 20, 2014
    Ratings:
    +5 / 7,196 / -13
    Country:
    India
    Location:
    India
    WASHINGTON: The core purpose of US economic engagement with Pakistan is to ensure that it’s not a failure in the future and stops being such a poor country, says a senior official of the US Treasury Department.

    David Malpass, Under Secretary of Treasury for International Affairs, told lawmakers during a Congressional hearing on Wednesday that the Trump administration also wants to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt.

    Pakistan is seeking an $8 billion extended loan facility from the International Monetary Fund (IMF) to bail itself out of a severe balance-of-payments crisis that threatens to cripple its economy. The two parties are still discussing the package and a final decision is expected early next month.

    At this House Financial Services Committee hearing on international financial institutions, several US lawmakers expressed concern that Pakistan may use the IMF loan to repay some of the $60bn loans it is borrowing from China for CPEC. Some lawmakers also argued that this huge Chinese debt was responsible for the economic challenges Pakistan was facing.

    Read more: US eases fears Pakistan will use IMF loans to clear China debt

    Congressman Ed Royce, a California Republican, reminded Mr Malpass that in July this year Secretary of State Mike Pompeo had said that there’s no rationale for using IMF and American tax dollars — that are part of the IMF funding — to bailout Chinese bond holders. What’s the administration doing to prevent this, Congressman Royce questioned.

    “With regard to Pakistan, Secretary Pompeo is exactly right. So, we are working and making clear within the IMF that if it were going to supply any funding to Pakistan that it would not be used to repay Chinese loans,” Mr Malpass said.

    “We are trying also to make sure that Pakistan changes its economic programme, so that it’s not a failure in the future. So, that’s the core of our purpose with regard to Pakistan,” he added.

    Later in the hearing, Congressman Brad Sherman, a California Democrat, raised the issue again.

    “Looks like IMF will loan the money to Islamabad so that they can send the money to Beijing. What would we do to make sure that the IMF is not used, in effect, just to pay back China?” he asked.

    “We will make strong efforts, and I believe successful efforts, to make sure that what you describe doesn’t happen, meaning a payoff of Beijing via Islamabad,” Mr Malpass said.

    “But Pakistan has not been successful yet at all in finalising a package with the IMF. So, it’s something that we follow closely,” he added. “One of the things that we are aware of and do follow is that IMF loans tend to be shorter maturity loans and China’s loans to Pakistan have been longer maturity loans.”

    When Mr Sherman demanded to know how would Washington make sure that Islamabad follows the conditions attached to an IMF package, Mr Malpass said: “We will look for ways that that round-tripping does not happen the way you described.”

    Helping Pakistan overcome its economic deficiencies, however, was even more important, he added.

    “Important in this, in my view also, is the structural reforms in Pakistan that are necessary for it to stop being such a poor country,” Mr Malpass said.

    Published in Dawn, December 14th, 2018


    https://www.dawn.com/news/1451373
     
    • Thanks Thanks x 1
  2. Path-Finder

    Path-Finder ELITE MEMBER

    Messages:
    14,258
    Joined:
    Feb 7, 2013
    Ratings:
    +5 / 18,753 / -7
    Country:
    Pakistan
    Location:
    United Kingdom
    oh please f#ck off. In the politest possible way.
     
    • Thanks Thanks x 10
  3. BHarwana

    BHarwana ELITE MEMBER

    Messages:
    22,047
    Joined:
    Sep 24, 2016
    Ratings:
    +15 / 31,670 / -4
    Country:
    Pakistan
    Location:
    Pakistan
    The only help USA can give us is stay the duck away from our economy. In the most respectable manner.
     
    • Thanks Thanks x 11
  4. Dubious

    Dubious MODERATOR

    Messages:
    33,341
    Joined:
    Jul 22, 2012
    Ratings:
    +68 / 65,881 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Help? Sure, as a token of appreciation we offer to help you in the same manner in your security and defense sectors? :enjoy:
     
    • Thanks Thanks x 6
  5. Ghessan

    Ghessan FULL MEMBER

    Messages:
    279
    Joined:
    Feb 28, 2018
    Ratings:
    +0 / 240 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Pakistan has not only shared CPEC details with IMF but also Chinese loans will begin with pay off in 2022-23 time. there is not a question arise out of this junk of congressional hearing that it is a bad time. US need to learn and will learn as they have to get rid Afghanistan as trump is looking at next elections through the lens of mid terms.
     
    • Thanks Thanks x 1
  6. xyx007

    xyx007 FULL MEMBER

    Messages:
    440
    Joined:
    Nov 27, 2017
    Ratings:
    +1 / 438 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Pakistan's IMF loan is caught in the battle between two superpowers.Uncle Sam, You may take them elsewhere for the needier like your recently appointed policeman in our region, where millions still live below the poverty line and have no toilets. We can do without any help from your side. Just go away from our region without causing any more havoc.
     
    • Thanks Thanks x 2
  7. IceCold

    IceCold PDF VETERAN

    Messages:
    14,220
    Joined:
    May 1, 2007
    Ratings:
    +5 / 13,735 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Didnt IMF rubbished US concerns the first time?
     
  8. Retired Troll

    Retired Troll ELITE MEMBER

    Messages:
    36,427
    Joined:
    Apr 5, 2017
    Ratings:
    +14 / 31,875 / -11
    Country:
    Pakistan
    Location:
    Germany
    Pakistan will be the biggest benefactor of the modern trade wars.
     
  9. PaklovesTurkiye

    PaklovesTurkiye SENIOR MEMBER

    Messages:
    5,411
    Joined:
    Dec 1, 2015
    Ratings:
    +8 / 12,159 / -1
    Country:
    Pakistan
    Location:
    Pakistan
    Americans at it again...

    What a bloody joke...

    All though what they said can be said in front of US public because average American is not that bright to understand what's going on
     
  10. Chakar The Great

    Chakar The Great SENIOR MEMBER

    Messages:
    2,616
    Joined:
    Apr 25, 2018
    Ratings:
    +2 / 4,665 / -1
    Country:
    United Kingdom
    Location:
    Ireland
    No thank you. America should feed its puppy in the region.
     
  11. Khan Kore

    Khan Kore FULL MEMBER

    Messages:
    147
    Joined:
    Mar 3, 2018
    Ratings:
    +0 / 107 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Pakistan economic well being is not their main concern, rather it is the other way around. They don't want to see Pakistan stand on its own feet. Economic dependency is one way to monopolize the third world countries. The UN, The World Bank and IMF are the tools that gives economic mussels to US foreign policy. As long we remain dependent on those institutions, we as a nation will remain slave to the Western world.
     
  12. maximuswarrior

    maximuswarrior ELITE MEMBER

    Messages:
    10,660
    Joined:
    Jun 15, 2016
    Ratings:
    +4 / 19,087 / -6
    Country:
    Netherlands
    Location:
    Netherlands
    These Americans have become an absolute joke. They sound so pathetic and confused. It is always contradictory. It is just like their president who rants one day on Twitter how Pakistan has done nothing and the next day sends letters to PM Imran Khan for help.

    We need to show these crazy rednecks a middle finger. 17 years of Afghanistan has fvcked up their heads.
     
    Last edited: Dec 16, 2018
  13. undercover JIX

    undercover JIX SENIOR MEMBER

    Messages:
    3,837
    Joined:
    Dec 6, 2008
    Ratings:
    +0 / 2,890 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    no need to show middle finger, they need our services, pay the price. cash this cow. they tried bullying did not work so golden chance for Pakistan.
     
    • Thanks Thanks x 1
  14. maximuswarrior

    maximuswarrior ELITE MEMBER

    Messages:
    10,660
    Joined:
    Jun 15, 2016
    Ratings:
    +4 / 19,087 / -6
    Country:
    Netherlands
    Location:
    Netherlands
    Agreed. This should have been done ages ago.

    The middle finger is necessary though. Just by charging them more we won't admire the Yanks.
     
    • Thanks Thanks x 1
  15. undercover JIX

    undercover JIX SENIOR MEMBER

    Messages:
    3,837
    Joined:
    Dec 6, 2008
    Ratings:
    +0 / 2,890 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Middle finger should always be ready if our conditions are not accepted.