According to the report of The Sunday Guardian, the main reason behind stalling talks between the Government of Pakistan and the International Monetary Fund is the role of CPEC in destroying the Pakistani economy. Pakistan’s economy was further ruined because the billions of dollars invested by China in the name of CPEC did not bring any return. Sources said that the IMF has bluntly said that Pakistan should renegotiate with China on the terms of CPEC, otherwise it would be very difficult to give a bailout package.
China accounts for 30 percent of Pakistan’s foreign debt
IMF will take its final decision in this direction in the next few days. IMF team had visited Pakistan in January and had extensive discussions. Pakistan wants a new tranche of $1.1 billion out of the $6.5 billion package from the IMF, which was agreed between the two in 2019. Pakistan wants this bailout package under any circumstances so that it can avoid default. If the IMF agrees, it will have to release the money by the end of June.
Saudi Arabia and UAE have announced that they will give an amount of $3 billion to Pakistan but they have not released the money yet. Apart from these two, no other country has come forward to help Pakistan. Pakistan has to return the Chinese debt of about $ 10,777 million. IMF officials said that since 2019, the money they had given to revive the economy was spent by Pakistan to repay China’s CPEC debt. In this way, Pakistan cheated the IMF and reduced the loan of CPEC which has become a debt trap. China or its companies account for about 30 percent of Pakistan’s total foreign debt.