China backs Pakistan's request to IMF for financial assistance

BEIJING: China has rebuffed the claim that the loans under China Pakistan Economic Corridor (CPEC) are responsible for the current financial situation of Pakistan. 

At a regular press briefing in Beijing, Chinese Foreign Ministry’s spokesperson Lu Kang said Beijing has explained many times that the CPEC is being undertaken by the two governments with mutual consultations and contributions for shared benefits.

He said that China supported the International Monetary Fund (IMF) in carrying out an objective and professional evaluation of Pakistan’s financial situation.

The Chinese foreign ministry’s response came in the wake of the US Department of State spokesperson Heather Nauert’s statement that the reason Pakistan found itself in financial crisis is Chinese debt.

At a press briefing lately, she had said: “I think part of the reason that Pakistan found itself in this situation is Chinese debt and the fact that there is debt that governments have incurred that they maybe thought wouldn’t be so tough to bail themselves out of, but has become increasingly tough.”

Meanwhile, Minister for Finance Asad Umar has said the bailout package of International Monetary Fund (IMF) would be presented in the Parliament.

The minister said the Pakistan Tehreek-e-Insaf (PTI) government had reduced the burden on common man, while the last PML-N government had levied increased taxes on items necessary for common man besides increasing electricity prices.

Rather, the present government had imposed taxes on luxury cars and expensive mobile phones, he said.

He said $12 billion were required to increase foreign exchange reserves, which was essential for the country’s economic stability. The government would bring reforms in the economic system, he added.