China reaffirms support for Pakistan’s economic revival amid IMF bailout talks

Federal Minister for Finance and Revenue Ishaq Dar on Thursday held separate meetings with the envoys of China and United Arab Emirates (UAE), key allies of cash-strapped Pakistan that is currently engaged with the International Monetary Fund (IMF) for revival of its bailout programme.

Bao Zhong, Acting Charge’d Affairs, Embassy of the People’s Republic of China, called on Dar at the Finance Division, read a statement released by the Finance Division.

As per the statement, Dar highlighted the deep-rooted, long-standing bilateral ties between Pakistan and China, and appreciated Chinese support to Pakistan on multiple fronts.

“He also apprised the Chinese envoy of the country’s economic situation and the progress in the ongoing IMF programme,” read the statement.

Zhong assured of China’s constant support to the people of Pakistan in economic and political terms.

In a separate meeting, the finance minister also met Hamad Obaid Ibrahim Salim Al-Zaabi, Ambassador of the UAE, at the Finance Division.

As per the statement, Dar and Al-Zaabi conversed about the deep-rooted brotherly ties between both countries and discussed the various areas of common interest for further strengthening trade and economic ties between the UAE and Pakistan.

Dar acknowledged that UAE has been a great partner of Pakistan in various fields including energy, refinery, petroleum and trade.

“The UAE envoy also reciprocated the interest of the UAE government for expanding investment in various sectors of the economy of Pakistan,” read the statement.

Dar appreciated and welcomed the investment proposals of the UAE in Pakistan and assured of complete support and cooperation by the government.

The government has been scrambling to arrange funds from its multilateral and bilateral partners, and managed to secure financing commitments from the UAE and China in order to meet a prior condition of the stalled IMF bailout package.

However, the IMF said it needed further necessary financing assurances, implying that the $3 billion in commitments from Saudi Arabia, the UAE as well as refinancing of a loan from China was not enough.

Experts have said the IMF programme is crucial for Pakistan, which is passing through one of its worst economic crises in decades, to avert a potential default.

Minister of State for Finance Aisha Ghaus Pasha on Wednesday said the prime minister and the ministry of finance are in total commitment to the IMF programme and “we are not thinking anything without the Fund programme.”

In response to a question as to what would be the government’s future plan in case the talks with the IMF fail, Pasha said there is always a Plan-B but the government is not thinking about anything without the IMF programme.