Pakistan has not yet formally approached the International Monetary Fund for financial assistance, but if bailout talks get underway this week, the goal will be to help Pakistan reach its full potential, the IMF’s chief economist said on Tuesday.

Addressing a news conference at the IMF and World Bank annual meetings in Bali, the IMF’s Maurice Obstfeld cautioned that increased Chinese involvement in Pakistan’s economy could bring both benefits and risks.

Obstfeld said Pakistan is facing financing gaps as it has been hit by a large fiscal and current account deficit, a low level of reserves and a currency he described as “too rigid” and over-valued.

Finance Minister Asad Umar said on Monday the government would seek to open talks with the IMF in Bali this week for emergency financial assistance. 
&nbsp; 
Prime Minister Imran Khan had earlier sought alternatives to a second bailout programme in five years from the IMF as it impose austerity and limit his vision of an Islamic welfare state.

Obstfeld said that if the IMF does enter into talks with Pakistan this week on a possible new financing programme, the goal would be reforms that would help Pakistan reach its “immense potential” without providing specific details.

“The government has expressed its desires to enact deep structural reforms that might break the cycle of Pakistan needing financial support from the Fund,” he said.

Infrastructure needs

Pakistan needs more infrastructure development, Obstfeld added, and the country could benefit from China’s role in supporting its project financing.

But China’s involvement could also bring potential risks, he said.

“It is important that the design of the projects... be solid and excessive debts which cannot be repaid are avoided,” the IMF chief economist said.

Islamabad has cut the size of the biggest Chinese “Silk Road” project in Pakistan, a reconstruction of the main rail line between the port city of Karachi and Peshawar in the northwest by $2 billion, citing government concerns about the country’s debt levels.

The changes are part of Islamabad’s efforts to rethink key Belt and Road Initiative projects in Pakistan, to which China has pledged about $60bn in financing.

The Trump administration has been critical of China’s Belt and Road initiative, saying that it has saddled some developing countries with debts they cannot afford to repay.

In July, US Secretary of State Mike Pompeo said there was “no rationale” for an IMF bailout of Pakistan that pays off Chinese loans to Pakistan.

Chinese officials have rejected criticism that the so-called China-Pakistan Economic Corridor projects have burdened Pakistan with unsustainable debts. Instead, the Chinese maintain, they have boosted the country’s economic growth and provided 70,000 jobs.

Pakistan has not yet formally approached the International Monetary Fund for financial assistance, but if bailout talks get underway this week, the goal will be to help Pakistan reach its full potential, the IMF’s chief economist said on Tuesday.

Pakistan has not yet formally approached the International Monetary Fund for financial assistance, but if bailout talks get underway this week, the goal will be to help Pakistan reach its full potential, the IMF’s chief economist said on Tuesday. Addressing a news conference at the IMF and World Bank annual meetings in Bali, the IMF’s Maurice Obstfeld cautioned that increased Chinese involvement in Pakistan’s economy could bring both benefits and risks. Obstfeld said Pakistan is facing financing gaps as it has been hit by a large fiscal and current account deficit, a low level of reserves and a currency he described as “too rigid” and over-valued. Finance Minister Asad Umar said on Monday the government would seek to open talks with the IMF in Bali this week for emergency financial assistance. Prime Minister Imran Khan had earlier sought alternatives to a second bailout programme in five years from the IMF as it impose austerity and limit his vision of an Islamic welfare state. Obstfeld said that if the IMF does enter into talks with Pakistan this week on a possible new financing programme, the goal would be reforms that would help Pakistan reach its “immense potential” without providing specific details. “The government has expressed its desires to enact deep structural reforms that might break the cycle of Pakistan needing financial support from the Fund,” he said. Infrastructure needs Pakistan needs more infrastructure development, Obstfeld added, and the country could benefit from China’s role in supporting its project financing. But China’s involvement could also bring potential risks, he said. “It is important that the design of the projects... be solid and excessive debts which cannot be repaid are avoided,” the IMF chief economist said. Islamabad has cut the size of the biggest Chinese “Silk Road” project in Pakistan, a reconstruction of the main rail line between the port city of Karachi and Peshawar in the northwest by $2 billion, citing government concerns about the country’s debt levels. The changes are part of Islamabad’s efforts to rethink key Belt and Road Initiative projects in Pakistan, to which China has pledged about $60bn in financing. The Trump administration has been critical of China’s Belt and Road initiative, saying that it has saddled some developing countries with debts they cannot afford to repay. In July, US Secretary of State Mike Pompeo said there was “no rationale” for an IMF bailout of Pakistan that pays off Chinese loans to Pakistan. Chinese officials have rejected criticism that the so-called China-Pakistan Economic Corridor projects have burdened Pakistan with unsustainable debts. Instead, the Chinese maintain, they have boosted the country’s economic growth and provided 70,000 jobs.

IMF warns Pakistan against ‘excessive loans’ from China

Chinese Foreign Minister Wang Yi has defended Beijing's repeated blockage of India's bids at the United Nations to list chief of Pakistan-based militant group Jaish-e-Mohammed (JeM) Azhar Masood as a global terrorist, arguing that the issue lacks "consensus" among the members of the UN Security Council as well as the "directly concerned" parties - India and Pakistan.

Azhar is accused of several deadly terrorist attacks in India, including one on the Uri military base in Kashmir in 2016 in which 17 security personnel were killed.&nbsp;

A veto-wielding permanent member of the UN Security Council, China has repeatedly blocked India's move -- supported by the US, Britain and France -- to designate Azhar a terrorist under the Al-Qaeda Sanctions Committee of the UN Security Council.&nbsp;

The JeM, founded by Azhar, has already been in the UN's list of banned terror outfits.&nbsp;&nbsp; &nbsp;&nbsp;

"If all parties come to a consensus, we will support it. But it is the parties that are rightly concerned who are not coming around to the same conclusion, like India and Pakistan don't have the same conclusions," Wang said on Friday in response to a question on China defending Pakistan-based terrorist in the UNSC at a conference organised by the American think-tank, Council on Foreign Relations.&nbsp;

He said if the parties "directly concerned" are able to come to a consensus, then "together we will be able to push the process forward".&nbsp;

"We think that is a better way to go, and we will stay in close touch with India on this issue because we also have very good ties with the Indian side. We hope to see an early consensus, and together we can contribute to the fight against terror,&nbsp;the foreign minister said.&nbsp;

China and Pakistan are considered all-weather allies.

Wang, who is currently in New York to attend the 73rd annual session of the United Nations General Assembly, argued that listing of terrorists should be based on proof and claimed that there is not enough evidence against Masood.

"Whether these people are terrorists or not, there should be solid facts and proof. If there is irrefutable evidence, no one can turn its back on it. I don't think Pakistan will do that," he asserted.

He also praised Pakistan for its fight against terrorism.&nbsp;

"China is against all forms of terrorism...We have been supporting and encouraging Pakistan in its efforts in fighting terrorism... Years ago, at the request of the US, Pakistan participated in the fight against Al-Qaida in Afghanistan. It paid a heavy price for that and has made a huge contribution. We believe that there should be a fair judgment of what they (Pakistan) did," Wang said.&nbsp;

Chinese Foreign Minister Wang Yi has defended Beijing's repeated blockage of India's bids at the United Nations to list chief of Pakistan-based militant group Jaish-e-Mohammed (JeM) Azhar Masood as a global terrorist, arguing that the issue lacks "consensus" among the members of the UN Security Council as well as the "directly concerned" parties - India and Pakistan.

Chinese Foreign Minister Wang Yi has defended Beijing's repeated blockage of India's bids at the United Nations to list chief of Pakistan-based militant group Jaish-e-Mohammed (JeM) Azhar Masood as a global terrorist, arguing that the issue lacks "consensus" among the members of the UN Security Council as well as the "directly concerned" parties - India and Pakistan. Azhar is accused of several deadly terrorist attacks in India, including one on the Uri military base in Kashmir in 2016 in which 17 security personnel were killed. A veto-wielding permanent member of the UN Security Council, China has repeatedly blocked India's move -- supported by the US, Britain and France -- to designate Azhar a terrorist under the Al-Qaeda Sanctions Committee of the UN Security Council. The JeM, founded by Azhar, has already been in the UN's list of banned terror outfits. "If all parties come to a consensus, we will support it. But it is the parties that are rightly concerned who are not coming around to the same conclusion, like India and Pakistan don't have the same conclusions," Wang said on Friday in response to a question on China defending Pakistan-based terrorist in the UNSC at a conference organised by the American think-tank, Council on Foreign Relations. He said if the parties "directly concerned" are able to come to a consensus, then "together we will be able to push the process forward". "We think that is a better way to go, and we will stay in close touch with India on this issue because we also have very good ties with the Indian side. We hope to see an early consensus, and together we can contribute to the fight against terror, the foreign minister said. China and Pakistan are considered all-weather allies. Wang, who is currently in New York to attend the 73rd annual session of the United Nations General Assembly, argued that listing of terrorists should be based on proof and claimed that there is not enough evidence against Masood. "Whether these people are terrorists or not, there should be solid facts and proof. If there is irrefutable evidence, no one can turn its back on it. I don't think Pakistan will do that," he asserted. He also praised Pakistan for its fight against terrorism. "China is against all forms of terrorism...We have been supporting and encouraging Pakistan in its efforts in fighting terrorism... Years ago, at the request of the US, Pakistan participated in the fight against Al-Qaida in Afghanistan. It paid a heavy price for that and has made a huge contribution. We believe that there should be a fair judgment of what they (Pakistan) did," Wang said.

China defends move to block India's bids to list Masood Azhar as global terrorist 

The recent transition of power in the Maldives is expected to transform the relationship between India and the Indian Ocean archipelago nation.

Maldives which was initially dependent on India for its security and trade moved towards China&nbsp;since 2013 after&nbsp;Abdulla Yameen took to power.

Since then the island country had received significant grants and loan from China's Belt and Road Initiative.

Maldives also utilised the funds that it had received from China in advancing the international airport in the capital of Male and a bridge connecting the airport to town.

The Chinese investment in the Maldives is seen as part of its "String of Pearls" strategy, developing a network of friendly ports in the region from Sri Lanka to Pakistan.

Before the election, the opposition said it would review Chinese investment, partly out of concern over terms, as experts have warned that the Maldives risked falling into a debt trap.

Maldives failure in paying off the debts may throw the country in a serious debt trap as it may have to face adverse consequence just like Sri Lanka.

Sri Lanka had to sell off a majority of its stake in the Hambantota port to China after it failed to pay off the debts.

While new power in the Maldives seems to have an inclination towards India, Maldives may not ignore China due to its unparalleled funding which India can certainly not match.

A media report quoted Alyssa Ayres, a senior South Asia fellow at the Council on Foreign Relations as saying that as&nbsp;Ibrahim Mohamed Solih's pro-democracy government is more politically aligned with New Delhi, he is likely to repair ties with India and "veer back to the more traditional close regional partnership".

Veteran Maldives lawmaker Ibrahim Mohamed Solih overcame the detention and exile of key opposition figures to win a weekend presidential poll and unseat incumbent Abdulla Yameen

The victory of Solih, who is known as a reformer, dislodges Yameen, a hardliner who had cultivated ties with both Beijing and Saudi Arabia, and cracked down on threats to his rule, even jailing his own half-brother, Maumoon Abdul Gayoom.

(With inputs from agencies)

The recent transition of power in the Maldives is expected to transform the relationship between India and the Indian Ocean archipelago nation. Maldives which was initially dependent on India for its security and trade moved towards China since 2013 after Abdulla Yameen took to power.

The recent transition of power in the Maldives is expected to transform the relationship between India and the Indian Ocean archipelago nation. Maldives which was initially dependent on India for its security and trade moved towards China since 2013 after Abdulla Yameen took to power. Since then the island country had received significant grants and loan from China's Belt and Road Initiative. Maldives also utilised the funds that it had received from China in advancing the international airport in the capital of Male and a bridge connecting the airport to town. The Chinese investment in the Maldives is seen as part of its "String of Pearls" strategy, developing a network of friendly ports in the region from Sri Lanka to Pakistan. Before the election, the opposition said it would review Chinese investment, partly out of concern over terms, as experts have warned that the Maldives risked falling into a debt trap. Maldives failure in paying off the debts may throw the country in a serious debt trap as it may have to face adverse consequence just like Sri Lanka. Sri Lanka had to sell off a majority of its stake in the Hambantota port to China after it failed to pay off the debts. While new power in the Maldives seems to have an inclination towards India, Maldives may not ignore China due to its unparalleled funding which India can certainly not match. A media report quoted Alyssa Ayres, a senior South Asia fellow at the Council on Foreign Relations as saying that as Ibrahim Mohamed Solih's pro-democracy government is more politically aligned with New Delhi, he is likely to repair ties with India and "veer back to the more traditional close regional partnership". Veteran Maldives lawmaker Ibrahim Mohamed Solih overcame the detention and exile of key opposition figures to win a weekend presidential poll and unseat incumbent Abdulla Yameen The victory of Solih, who is known as a reformer, dislodges Yameen, a hardliner who had cultivated ties with both Beijing and Saudi Arabia, and cracked down on threats to his rule, even jailing his own half-brother, Maumoon Abdul Gayoom. (With inputs from agencies)

Will Maldives see closer ties with India under Ibrahim Mohamed Solih?

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IMF warns Pakistan against ‘excessive loans’ from China

China defends move to block India's bids to list Masood Azhar as global terrorist

Will Maldives see closer ties with India under Ibrahim Mohamed Solih?