China Foreign Ministry Spokesperson Mao Ning said the policies of a certain country and its spillover effects are responsible for Pakistan’s economic troubles on Thursday.
“I need to point out that the radical financial and monetary policies of a certain developed country and their serious spillover effects are the primary cause of the financial difficulties experienced by Pakistan and many other developing countries,”
Ning’s remarks came in her press breifing on March 2 and were presumably a hint towards the United States. She was answering a question about Chinese loans to Pakistan being rolled over as the country fights to avoid default.
“China has been in close economic and financial cooperation with Pakistan and supported its efforts to maintain economic stability, improve lives and achieve self-generated development,” Ming said, adding that the two countries were all-weather allies and iron brothers.
However, her main remarks were directed towards western countries and their financial institutions who she said bore the ‘lion’s share’ of the debt that many developing countries were being crushed under.
“China calls on concerted efforts from all parties to play a constructive role in Pakistan’s economic and social stability efforts,” Ning said.
Pakistan is trying to revive its IMF program as foreign exchange reserves dwindle to historic lows. While Rs170 billion in new taxes have been imposed on the country, the deal has still not materialised. Authorities in Pakistan have expressed surprise over how tough the IMF’s conditions have been this time around.
The country has also looked towards friendly countries for help in the form of aid or loans. However, many of these countries have made their aid conditional on resumptiona dn successful completion of the IMF program.