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

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Federal Minister for Information and Broadcasting Fawad Chaudhry on Friday said that Pakistan likely to receive a huge financial package from China.

The loan and the investments were reportedly part of the $6 billion package.

Neither side mentioned economic aid in their comments in front of the press, Reuters reported.

In his meeting with Xi, Khan, the cricketer-turned-politician, said: "my party (Pakistan Tehreek-e-Insaaf) has only been in power for two months. Unfortunately we have inherited a very hard economic situation", PM Imran said, as quoted by Reuters.

"If such a debt crisis also happens to other countries along the belt and road, and goes unaddressed, it will give China and the entire Eurasian continent a major political and economic headache", she noted in a recent article posted on Guancha.cn, a Chinese website for news and analysis. They have their high points, they have their low points. "Unfortunately our country is going through a low point at the moment", he said.

Pakistan admires China's development achievements and hopes to learn from China's experience in development, poverty alleviation and anti-corruption, Khan said.

Pakistan doesn't share a border with China.

"China has always supported Pakistan's safeguarding of national independence, sovereignty and territorial integrity, and the new Pakistani government's smooth running of the government and advancement of national construction", he said.

Xi told Imran that he highly valued the two country's relations, reaffirming they were "all-weather" friends.

During the meeting, PM Imran and AIIB president agreed to ensure transparency in the projects by accountability.

This is the second United States dollars 6 billion package which Khan has managed to obtain in the last few weeks as Pakistan reeled under severe financial crisis.

Further complicating matters, the United States, which strongly influences the International Monetary Fund, has said it will not finance the repayment of Pakistan's Chinese loans. The South Asian economy needs to plug a shortfall after foreign exchange reserves plunged more than 40 percent this year, the current account deficit widened and the currency lost a quarter of its value since December.

Despite the questions raised, China has remained confident in the correctness of its approach to co-operation with Pakistan, with Foreign Ministry spokesman Lu Kang on Wednesday saying the economic corridor was a "mutually beneficial project between the two countries which plays an important role in improving people's livelihood and promoting economic development".

It is also seeking fresh loans from Saudi Arabia and China, discussion of which is expected to dominate Khan's visit.

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.

Imran will meet Chinese Premier Li Keqiang on Saturday when the two countries are expected to sign a series of agreements.

His visit here was regarded as significant as it is taking place amid critical remarks made by some ministers in Khan's Cabinet on the CPEC which had caused consternation among Chinese leaders considering the "all-weather" relations.

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