ISLAMABAD: US Secretary of State Mike Pompeo assured Pakistan last week Washington would not try to block any request for a bailout from the International Monetary Fund (IMF), Pakistani Information Minister Fawad Chaudhry said on Tuesday.
The remarks, which Chaudhry said Pompeo made during his visit to Pakistan on Wednesday, come in stark contrast to Pompeo’s warnings in July that the United States had serious reservations about the IMF giving money to Pakistan due to concerns Islamabad would use the cash to pay off Chinese loans.
Those comments rattled Islamabad, which is facing a currency crisis and may have no option but to turn again to the IMF for a rescue if staunch allies China and Saudi Arabia do not offer more loans to prop up its foreign currency reserves.
Chaudhry told Reuters that relations between United States and Pakistan were “broken” before Pompeo’s trip to Islamabad but the visit had “set many things straight” and re-invigorated ties.
“He assured Pakistan that...if Pakistan opted to go to IMF for any financial help, the USA will not oppose it,” Chaudhry said in the capital, Islamabad.
The US embassy in Islamabad did not have any immediate comment.
The new government of Prime Minister Imran Khan, who took office in August, is trying to avert a currency crisis caused by a shortage of dollars in an economy hit by a ballooning current account deficit and dwindling foreign currency reserves.
Pakistani officials say they are discussing taking drastic measures to avert seeking a bailout from the IMF, which has come to Pakistan’s rescue 14 times since 1980, including most recently in 2013.
Pakistan’s relations with the United States have soured in recent years over the war in Afghanistan and Islamabad’s alleged support for Islamist militants. Ties dropped to a new low when President Donald Trump in January accused Pakistan of lies and deceit by playing a double game on fighting terrorism.
Islamabad denies aiding insurgents in Afghanistan and lashed out against Trump’s remarks, which were followed up by Washington suspending US military aid.
At the United States’ urging, a group of Western countries in February convinced a global body to put Pakistan on a terrorism financing watch list, a move that triggered concerns the United States may also seek to block Islamabad in other forums.
In July, Pompeo said there was “no rationale” for the IMF to bail out Pakistan. Pompeo worries that Islamabad would use the IMF money to pay off Chinese loans echoes concerns by other US officials that China is saddling many emerging market countries with too much debt. Beijing staunchly denies such claims.
“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,” Pompeo said in July, referring to a possible Pakistan bailout.
But during last week’s visit Pompeo said he was hopeful of “a reset of relations” long strained over the war in Afghanistan.
Pompeo said US won’t block Pakistan if it seeks IMF bailout — Pakistani minister
Pompeo said US won’t block Pakistan if it seeks IMF bailout — Pakistani minister
- Pompeo’s trip to Islamabad has “set many things straight” and re-invigorated ties, says Pakistani Information Minister Fawad Chaudhry
- Pakistani officials say they are discussing taking drastic measures to avert seeking a bailout from the IMF, which has come to Pakistan’s rescue 14 times since 1980, including most recently in 2013
Sri Lanka players ask to leave Pakistan after bombing, board says no
- Sri Lanka are playing three ODIs followed by T20 tri-nation series in Pakistan this month
- Suicide bombing in Islamabad on Tuesday made Sri Lankan players fear for security
Some Sri Lanka cricketers requested to return home from their Pakistan tour on Wednesday for safety reasons after a suicide bombing in Islamabad, but their board issued a stern directive to stay put or face consequences.
Sri Lanka are touring Pakistan, playing three one-day internationals followed by a Twenty20 tri-series along with Zimbabwe this month. Sri Lanka are scheduled to play Pakistan in the second ODI on Thursday in Rawalpindi.
But the bombing, which killed 12 people in Pakistan's capital Islamabad, made several Sri Lankan players ask to go home, the Sri Lanka Cricket board said in a statement. Rawalpindi and Islamabad are twin cities hardly 20 km (12 miles) apart.
"SLC immediately engaged with the players and assured them that all such concerns are being duly addressed in close coordination with the Pakistan Cricket Board (PCB) and the relevant authorities to ensure the safety and well-being of every member of the touring party," the SLC said.
'CONTINUE WITH TOUR'
"In this context, SLC has instructed all players, support staff and team management to continue with the tour as scheduled," SLC added.
Any player who returns despite the directive will be replaced immediately to avoid disrupting the tour, it said.
If anyone does that, however, "a formal review will be conducted to assess their actions, and an appropriate decision will be made upon the conclusion of the review."
SLC did not respond to a question on the number of players and staff who requested to return home.
Pakistan had been struggling to convince sports teams to visit the country after gunmen attacked a bus carrying touring Sri Lanka cricket players in the city of Lahore in 2009.
At least six players were injured, and visits by international teams came to a halt as Pakistan played their "home" matches in the United Arab Emirates.
But security has improved since then in major urban centers and test cricket returned when Sri Lanka toured in 2019.
In this series, Pakistan won the first ODI, which was also held in Rawalpindi, by six runs on Tuesday.
