China has come to Pakistan’s rescue as IMF program faces ‘excessive delay’: PM

Prime Minister Shehbaz Sharif hailed China’s role on Tuesday, saying the neighboring ally has come to Pakistan’s rescue during the current economic downturn as the ongoing International Monetary Fund (IMF) bailout program remains behind schedule.

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

“Lately, when Pakistan is facing economic challenges and we are engaged with the IMF to try to finalize the ninth review, Pakistan has complied with all the terms and conditions required by the IMF.

“We thought that this (the resumption of the program) would have been done two months ago, three months ago, but there has been an excessive delay, but China once again came to our aid and rescue,” the prime minister said.

“Aside from China, we have our great friend like Saudi Arabia, the United Arab Emirates and Qatar, who have been helping and supporting Pakistan. But right now, Chinese financial support has been exceptional.

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

Shehbaz praised his economic team, including Finance Minister Ishaq Dar, for reaching the deals with Chinese counterparts.

On the C5 project, the prime minister said the signing of the MoU is a “big step forward in China-Pakistan economic cooperation.”

“Hopefully, we will get it up and running without further delay,” he said.

Shehbaz praised Chinese investment to the tune of 4.8 billion US dollars 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,” she said.

The resumption of the IMF’s bailout program has been seen as crucial for the cash-strapped economy, which is grappling with dwindling foreign exchange reserves, which currently stand at $4 billion.

last week, the State Bank of Pakistan (SBP) It said it has received $1 billion from China, an inflow that comes after Islamabad returned the amount earlier.