April 23, 2022
2 mins read

Pak finance minister’s first port of call is Washington, not Beijing

Many eyebrows have raised with Washington becoming Ismail’s first port of call even as analysts maintain that the visit has little “co-relation with a third country or Pakistan’s relations with China.”, reports Mahua Venkatesh

Amid rapidly deteriorating economic situation, Pakistan’s finance minister Miftah Ismail, who took over only this week, has already reached Washington with the aim to resume negotiations at the earliest with the International Monetary Fund (IMF).

Many eyebrows have raised with Washington becoming Ismail’s first port of call even as analysts maintain that the visit has little “co-relation with a third country or Pakistan’s relations with China.”

“I am off to Washington DC to try and put back on track our IMF program that PTI and IK derailed, thus endangering our economy,” Ismail, who blamed former Pakistan Prime Minister Imran Khan for the current economic mess, said in a tweet.

According to reports, the Khan government took $15 billion gross foreign loans in the last nine months alone, leading to the gross foreign debt climbing to a level of more than $57 billion during the Pakistan Tehreek-e-Insaaf (PTI) regime.

Khan took over as Prime Minister in August 2018.

“IMF is the doctor to go to when you are in a tough spot. It is not possible for a bilateral lender to fulfil that role.” Rajiv Dogra former diplomat told India Narrative.

“Pakistan’s current situation is worrisome with depleting foreign exchange reserves..the good thing is that the newly inducted government has started on the right note. After Sri Lanka’s default on its external debt, it is clear that delay in following the IMF prescription will have severe implications for Pakistan,” Dogra said.

The IMF wants Islamabad to implement reform measures and revoke the subsidies and exemptions announced by the Khan administration. Pakistan received $1 billion grant assistance from the IMF under its $6 billion Extended Fund Facility (EFF).

While in 2019, IMF agreed for a bailout package, it halted assistance in January 2020, after former Pakistan Prime Minister Imran Khan refused to increase electricity tariff and impose additional taxes as prescribed by the multilateral agency.

All eyes on the status on CPEC

Pakistan’s Prime Minister Shehbaz Sharif has also stressed the need to press the pedal on the execution of the China Pakistan Economic Corridor (CPEC).

China-Pakistan Economic Corridor (CPEC) (Xinhua_IANS)

Ahsan Iqbal, Pakistan’s Federal Minister Planning, Development and Special Initiatives in an interview to Geo TV said that the country lost approximately $40 billion in foreign investment on account of the delay in execution of the projects under CPEC.

“In my opinion, we lost approximately $40 billion in foreign investment, which would have been possible had the special economic zones been completed. This money has now been diverted to Laos, Vietnam, Cambodia, and some other countries,” he said.

Meanwhile, citing poor performance, the Sharif government is also likely to dissolve the CPEC Authority, set up by Khan. The CPEC Authority was set up to oversee the functioning of the projects. According to reports, the Sharif government could reinstate the CPEC Secretariat under the planning ministry to oversee execution of the projects.

(The content is being carried under an arrangement with indianarrative.com)

ALSO READ: Pakistan to participate in Asian Track Cycling Championship in Delhi

Previous Story

Chinese energy firms in talks for Shell’s Russian gas stake

Next Story

Nawaz Sharif behind conspiracy to topple govt: Imran

Latest from -Top News

BRICS must break the digital chains

BRICS nations need to build consensus, balance innovation and social justice by reinforcing the digital sovereignty of Global South, including evenly distribution of benefits through AI, writes Baidya Bikash Basu BRICS, the

Modi begins landmark Argentina visit

First Indian PM to visit in 57 years; economic ties, lithium and trade top agenda Prime Minister Narendra Modi kicked off a historic visit to Argentina on Saturday by paying homage to

Texas flash floods kill at least 24; Trump vows help

President calls tragedy ‘shocking’ as search for missing continues overnight At least 24 people have died in Kerr County, Texas, after catastrophic flooding swept through the region, prompting a large-scale rescue and
Go toTop

Don't Miss

Pakistan Army not available for Punjab province election duty

The response from the army has put serious questions and

Texas loses power amid Arctic blast

Large parts of the northern Texas hub of Dallas were