China Mad At Pakistan Amid Economic Turmoil

China Mad At Pakistan Amid Economic Turmoil
China is furious with Pakistan for delaying the implementation of development projects under the China-Pakistan Economic Corridor (CPEC) as Islamabad drowns deep into the economic turmoil.

China is angry in particular as it recently helped Pakistan out by rolling out loan, and extended the much-needed support.

But with the International Monetary Fund (IMF) funding still in doubt, Pakistan is hardly able to execute plans, let alone complete the development projects under the CPEC.

Finance Minister Ishaq Dar has on numerous occasions expressed confidence that matters will be settled with the international lender, and people will soon hear "good news".

Dar, in a recent meeting with US Embassy Chargé d’Affaires Andrew Schofer, reiterated the federal government's resolve to complete the IMF programme.

The meeting came amid reports of blame being shifted between the Pakistani authorities and the IMF for the delay in reviving the bailout programme.

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It expires on June 30 so the finance minister was visibly relieved after China's announcement to roll over a $2 billion loan that matured last month.

He had also expressed pleasure, at the assistance, as reserves dipped to just four weeks' worth of imports and talks over an IMF bailout tranche of $1.1 billion ostensibly hit a stalemate, as well as CPEC stalemate.

Now, diplomatic sources say Chinese authorities are "much annoyed" by the mismanagement in Pakistan.

"China rolled over loans with a guarantee of IMF compliance and renewal but this did not happen. Power plant's payment is stuck in the billions. [Pakistani] government made assurances but nothing practically happened," said a senior diplomat.

China, the diplomat added, is also worried about the political instability in Pakistan. "We hear that due to the continuous delays, considering future challenges, IMF is demanding a $8 billion loan arrangement, and this may go up with delays as more repayments are coming in. Inflation is up [as well], so the IMF also wants [some] real interest [from Pakistan]."