For Pakistan's 13th IMF Bailout, Expect Tougher Conditions
- Pakistan has formally asked for IMF aid amid economic crisis
- Washington wants more scrutiny over China loans to Pakistan
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A regular client of the International Monetary Fund, investors are asking whether Pakistan’s 13th loan program since the late 1980s will finally break a cycle of financial crashes and bailouts.
Pakistan’s history of taking the lender’s money while dragging its heels on economic reforms suggest otherwise. With Islamabad now formally requesting IMF aid -- seeking to raise anywhere between $6 billion to more than $12 billion -- it will also face more scrutiny over debt owed to China. U.S. Secretary of State Mike Pompeo has said he will oppose any use of IMF funding to repay loans to Beijing.