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Pakistan
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Adnan Aamir
Adnan Aamir

Opinion | How US policy is turning Pakistan into a Chinese colony, thwarting America’s regional ambitions

Adnan Aamir says the US’ decision to block an IMF loan to Pakistan will only push the country more deeply into China’s sphere of influence

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Pakistan’s Foreign Minister Khawaja Muhammad Asif (left) shakes hands with Chinese Foreign Minister Wang Yi at the Diaoyutai State Guest House in Beijing on April 23. Photo: AFP
Adnan Aamir
The China Pakistan Economic Corridor (CPEC), a multibillion-dollar flagship project of the Belt and Road Initiative, is extremely important for both countries involved. Pakistan considers it an economic saviour and China sees it as the role model for future belt and road projects.
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Ever since the inception of the economic corridor in April 2015, there were concerns that the US government would oppose the project under some pretext. The moment came on July 30 when US Secretary of State Mike Pompeo vowed to block an International Monetary Fund bailout package for Pakistan if it is used to repay Chinese loans borrowed under CPEC.
Pakistan held its general elections on July 25, which were not free from claims of irregularities. However, election results confirmed that cricketer-turned-politician Imran Khan will form the government. It was revealed that finance ministry officials have already presented an option for the new government to borrow US$12 billion from the IMF to ease pressure on dwindling foreign reserves and repay overseas loans.

Pakistan’s economy is struggling and its remaining reserves of just US$9 billion can only cover the country’s imports for the next two months. Therefore, an IMF bailout is inevitable if Pakistan’s economy is to survive.

Unexpectedly, just five days after Pakistan’s elections, Pompeo opposed an IMF bailout package to Pakistan. He argued that American taxpayer dollars are part of IMF funding and therefore the US government would not allow a bailout package for Pakistan that could be used to repay Chinese creditors or the government of China. This is the first time the US government has openly made a move that is tantamount to attacking Pakistan-China economic cooperation.

Watch: Imran Khan’s journey from cricket star to Pakistan’s next PM

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