Defence Minister Ahmad Mukhtar, who accompanied Prime Minister Yousuf Raza Gilani on a visit to China last week, said Saturday the proposal had been made during the trip, which highlighted the neighbours' close ties.

"I haven't heard of this project. As far as I know this subject was not brought up during the visit last week" by Gilani, Chinese foreign ministry spokeswoman Jiang Yu told reporters.

"China and Pakistan are friendly neighbours and engage in extensive cooperation across the board. Over the years, China has provided assistance to Pakistan within our capacity," she added.

Jiang said Beijing hoped that assistance would help Pakistan "realise sustainable development" and improve the livelihood of its people.

China provided about 75 percent of the initial $250 million in funding for the construction of Gwadar port. It is currently operated by Singapore's PSA International.

Copyright AFP (Agence France-Presse), 2011