China Is Next on Khan's List as Pakistan Looks for Bailout Money

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China has repeatedly said that the Indian-Pakistani territorial dispute had to be settled through dialogue between the two sides.

Yao Jing, China's ambassador to Pakistan, told reporters in Islamabad on October 27 that Pakistan is expected to receive good news from the visit.

A loan of Dollars 1.5 billion is also expected to be offered, along with an additional package of USD three billion for the China-Pakistan Economic Corridor (CPEC), the report said.

The loan and the investments were reportedly part of the United States dollars 6 billion package.

But while neither leader mentioned economic aid in front of reporters, China's top diplomat guaranteed support from Beijing in a separate meeting with his Pakistani counterpart.

The South Asian country is in desperate need of a further bailout despite receiving a £4.6billion ($6bn) rescue package from Saudi Arabia just last month.

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He noted the assistance agreed to by Saudi Arabia, and said that China's support would allow Pakistan to avoid a large International Monetary Fund loan that may attract tough conditionalities which ultimately lead to inflation, squeeze the economy and put additional burden on the people.

Xi appreciated Khan for repeatedly stressing that he would view the relations with China as a political cornerstone in Pakistan's foreign policy and would unswervingly promote the construction of the China-Pakistan Economic Corridor (CPEC).

They also reiterated their steadfast commitment to strategic partnership and underscored taking it to new heights.

The country's foreign exchange reserves have fallen to a near five-year low of US$7.8 billion, the State Bank of Pakistan said on Thursday, while the net foreign reserves held by commercial banks have also dropped, to US$6.4 billion.

Finance Minister Asad Umar said this week a bailout was the only option and the government was seeking funds from various sources, including China, to avoid dependence on one country or institution.

Prior to his visit to China, Khan has already traveled to five other countries, an unprecedented move for a Pakistani leader.

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Chinese Minister Song on the occasion said the prime minister's first official visit to China since assuming office was keeping with the time-honoured traditions of the special friendship between Pakistan and China.

According to the details, PM Imran Khan met with the AIIB President on the side line of China International Import Expo. Imran is scheduled to hold talks with Chinese President Xi Jinping and Premier Li Keqiang and both the countries are expected to sign several agreements.

Bus service between the Xinjiang Uyghur Autonomous Region in China's west and the city of Lahore of Pakistan's Punjab province is set to be launched on November 3.

In an interview to the Chinese state-run media ahead of his visit, Khan said the CPEC has given Pakistan a great opportunity to bring in foreign investment and to get out of the hard economic situation it is facing.

The statements evoked serious concerns in China as the CPEC is the flagship project of President Xi's pet multi-billion BRI.

Mr. Lu stressed that the CPEC was an "economic project", and did not reflect China's position on Kashmir.

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