Gwadar Port in Balochistan province links CPEC with the Gulf Image Credit: Umargondal /Wikimedia Common
Pakistan’s incoming Imran Khan-led government may make all economic agreements with Beijing public as part of efforts to bring transparency and blunt criticism of China-Pakistan Economic Corridor.
Asad Umar, a known business leader likely to be finance minister in Pakistan Tehreek-e-Insaaf government vowed in an interview that Islamabad would be transparent on these accords as China and Pakistan pursue a $ 62 billion economic corridor that links Xinjiang through a network of roads and Gwadar deep seaport with the oil-rich Gulf region.
Umar, who spoke to Bloomberg News, said the new government will need upwards of $12 billion – in the form of loans from International Monetary Fund – to juggle out of the falling economic numbers.
“The decision needs to be taken in the next six weeks, the further you go forward the more difficult, the more expensive the options become,” Umar said.
His remarks about Islamabad going to the IMF came days after U.S. Secretary of State Mike Pompeo expressed American reservations on the Fund giving $12 billion package to Pakistan.
Pompeo says Pakistan might use the IMF bail out to pay back Chinese loans.
President Trump’s Administration is engaged in a trade war with China.
Umar also promised to make all Chinese agreements public after criticism of China-Pakistan Economic Corridor loan terms.
Imran Khan, whose PTI has emerged the largest single party in July 25 elections, has inherited a slew of economic troubles including budgetary deficits, stalemate in exports and a recurring power or electricity crisis.
Khan has pledged to make Pakistan a social welfare state but the economic challenges might frustrate his designs.
