Pakistan must guard against ‘debt trap’, says US envoy

US Chargé d’Affaires Natalie Baker has said Pakistan is a sovereign nation and must safeguard itself from falling into any country’s “debt trap”, stressing that the country should fully implement its privatisation programme and complete the International Monetary Fund’s (IMF) reform agenda to ensure long-term economic stability.

She was speaking informally to journalists at Aiwan-e-Sadr on Sunday, where she had arrived to attend the ceremony in which President Asif Ali Zardari conferred the country’s highest civilian award, Nishan-e-Pakistan, on Jordan’s King Abdullah II.

On a question regarding Pakistan’s close relations with China, Baker said Pakistan was “a free and sovereign country” that could maintain ties with any nation it wished, but must “carefully protect its economic sovereignty and interests”.

“Any project that leads a country into a debt trap is a matter of concern for the whole world, she said, adding that Washington was fully aware of the sensitive nature of Pakistan-China relations.

Baker stressed that only full compliance with the IMF’s reform programme would make Pakistan’s economic strategy successful. She noted that the World Bank was also extending effective support to Pakistan.

Asked whether the IMF and World Bank were being excessively strict with Pakistan, she replied that the IMF wanted Pakistan to pursue economic reforms that would result in “a better and sustainable economy”.

She added that Pakistan’s economic relationship with the United States “has always been strong and continues to progress”.

Baker stressed that Pakistan’s sovereignty was “extremely important” for Washington and said the US was assisting Pakistan “with a big heart”.

Responding to a query about a possible visit by President Trump, she said that once he found time from his international commitments, “he will visit Pakistan”.

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