China on Thursday vowed to do what it could to help cash-strapped Pakistan avert financial disaster as President Asif Ali Zardari continued an official visit aimed at rustling up crucial Chinese investments. The promise came as Premier Wen Jiabao met President Zardari, who is on his first official visit abroad after being elected in September.
President Zardari is expected to seek between 500 million dollars and 1.5 billion dollars as soft loans to help avoid looming bankruptcy: Sources here said President Asif Ali Zardari was expected to seek between 500 million dollars and 1.5 billion dollars as soft loans to help avoid looming bankruptcy.
Zardari inherited nearly empty government coffers and huge security problems from extremists. The global financial crisis has pushed Pakistan closer to the brink and reports, denied by Islamabad, have said the country faced bankruptcy as soon as February. However, Foreign Ministry spokesman Qin Gang offered no specifics on the form that Beijing's financial help would take, but said.
"As a long friend of Pakistan, China understands it is facing some financial difficulties," Qin told reporters, adding: "We're ready to support and help Pakistan within our capability." Premier Wen said the two countries were ready to advance their strategic relationship a day after Zardari and President Hu Jintao signed 11 agreements on trade and economic co-operation.
Zardari, on his first foreign trip as President, had made clear that commercial ties with China were foremost on the Pakistani delegation's agenda, according to Xinhua news agency. Pakistan is facing a critical shortfall in its balance of payments, along with inflation at close to 25 percent and heavy government borrowing from the central bank to cover a budget deficit.
Analysts believe the central bank's reserves are barely enough to cover two months of imports and that the country urgently needs three billion dollars to four billion dollars. "That Zardari would choose China as his first country to visit as President shows the high emphasis he places on developing friendly, co-operative Sino-Pakistan relations," Premier Wen was quoted as saying by Xinhua.
"Whether it's confronting the present financial crisis or fighting terrorism, China and Pakistan must strengthen their bilateral co-operation," Wen said. Meanwhile, the Financial Times reported that China agreed to provide 500 million dollars in a concessional loan to help Pakistan meet its balance of payment needs in April. Zardari hopes to secure another concessional loan of 500 million dollars to 1.5 billion dollars, it said. Zardari said he wanted to develop the political friendship between the two countries that was already "deeper than the sea", Xinhua reported.
Zardari is wooing Beijing at a time when his country's relations with the United States are strained after the US forces in Afghanistan carried out cross-border air raids and at least one ground assault on al Qaeda and Taliban targets in Pakistan.
Pakistan Ambassador to China Masood Khan said earlier this week in an interview with Pakistan television channel that an agreement on a civilian nuclear pact with China could be reached during the trip.
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