Pakistan To Request IMF Bailout Over US Opposition | WHAT REALLY HAPPENED


Pakistan To Request IMF Bailout Over US Opposition

The long-running speculation whether Pakistan will follow in Argentina's footsteps and demand an IMF bailout was answered this morning.

As a reminder, following a July 12 report from the Financial Times that senior Pakistani finance officials were drawing up options for Pakistan's new prime minister Imran Khan to seek an IMF bailout of up to $12 billion, U.S. Secretary of State Mike Pompeo warned against providing an International Monetary Fund bailout for Pakistan's new government that includes funding to pay off Chinese lenders.

In an interview on CNBC on July 30, Pompeo said the United States looked forward to engagement with the government of Pakistan's expected new prime minister, Imran Khan, but said there is "no rationale" for a bailout that pays off Chinese loans to Pakistan.

"Make no mistake. We will be watching what the IMF does," Pompeo said. "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."

As we reported in July, Pakistan's urgent need for the emergency cash came as a result of a currency crisis that saw a devaluation of the Pakistan Rupee, as Pakistan burned through a third of its reserves in the past year...

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