Pakistan's Power Minister Khurram Dastgir Khan has said that the failure to sign a staff-level agreement between the International Monetary Fund (IMF) and Pakistan could lead to the country's increased reliance on China, which the US and other Western powers "must take into account", media reports said.
When questioned about the government's approach to the budget in the event of a failure to reach a deal with the IMF, the minister said that the US and other Western powers should bear in mind that Pakistan's dependence on China would intensify, Dawn reported.
The minister also noted that there is a trend of gradually shifting international oil transactions from the US dollar to other currencies, particularly the Chinese yuan, the report said.
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Khan said that while Pakistan had met all the technical requirements, there was still a possibility that the staff-level agreement might not be reached due to geopolitical factors, adding that Finance Minister Ishaq Dar would be better suited to provide clarity on the matter.
The minister said that in the event the country is unable to complete the staff-level agreement, Pakistan will fulfil all its financial commitments with the assistance of China or other friendly nations, and that the country will still strive to present the best possible budget given the circumstances, for the benefit of the people, Dawn reported.
When asked whether Pakistan is likely to default, as predicted by experts in the Western countries, the minister responded by noting that these experts have been predicting Pakistan's default for over a year now.
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However, he emphasised that Pakistan had not delayed a single payment, and after weathering difficult times, the country is slowly but surely moving towards financial stability, Dawn reported.
