China has come to Pakistan’s rescue as IMF programme faces ‘inordinate delay’: PM Shehbaz

Prime Minister Shehbaz Sharif on Tuesday lauded the role of China, saying that the neighbouring ally came to Pakistan’s rescue during the current economic situation of distress, as the ongoing International Monetary Fund (IMF) bailout programme remains delayed.

The remarks were made during a memorandum of understanding (MoU) signing ceremony of a 1,200MW Chashma 5 (C5) nuclear power project. The MoU was inked between the China National Nuclear Cooperation and Pakistan Atomic Energy Commission (PAEC).

“Of late, Pakistan is faced with economic challenges, and we are engaged with the IMF in trying to finalise the ninth review. The country has already met all terms and conditions required by the IMF.

“We thought this (the resumption of the programme) would have been done two months ago, three months ago, but there has been an inordinate delay. However, China once again came to our help and our rescue,” said the PM.

“Other than China, we have our great friends like Saudi Arabia, UAE and Qatar, who have been helping and supporting Pakistan. But at this juncture, Chinese financial support has been outstanding.

“We are deeply obliged to President Xi and the Chinese leadership,” he said.

Shehbaz praised his economic team including Finance Minister Ishaq Dar for striking agreements with the Chinese counterparts.

On the C5 project, the prime minister said that the MoU signing is a “great step forward of economic cooperation between China and Pakistan”.

“Hopefully, we will kick start it without further delay,” he said.

Shehbaz lauded Chinese financing to the tune of $4.8 billion in Pakistan in the current economic situation. “This reflects that our friendship is higher than the Himalayas, deeper than the deepest ocean, sweeter than honey and stronger than iron and steel,” he said.

The resumption of the IMF bailout programme has been deemed crucial for the cash-strapped economy, facing dwindling foreign exchange reserves which currently stand at $4 billion.

Last week, the State Bank of Pakistan (SBP) said that it has received $1 billion from China, an inflow that occurs after Islamabad repaid the amount earlier.