Pakistan’s foreign reserves have dwindled, causing PM Khan to decry the financial situation he inherited.
China is willing to provide Pakistan with economic aid to help it deal with its deteriorating finances but more discussions are needed on the details, according to a top Chinese diplomat.
The comments on Saturday by Vice Foreign Minister Kong Xuanyou came after a meeting in Beijing between Chinese Premier Li Keqiang and new Pakistani Prime Minister Imran Khan .
Pakistan’s foreign reserves have plunged 42 percent since the start of the year and now stand at about eight billion dollars, or less than two months of import cover.
Late last month, Saudi Arabia pledged to give Pakistan a six billion dollars rescue package, but officials say it is not enough and the country still plans to seek a bailout from the IMF to avert a balance of payments crisis .
It would be Pakistan’s 13th rescue package from the multilateral lender since the late 1980s.
Speaking to reporters in Beijing’s Great Hall of the People following Khan’s talks with Li, Kong said his country would help.
« During the visit, the two sides have made it clear in principle that the Chinese government will provide necessary support and assistance to Pakistan in tiding over the current economic difficulties, » Kong said.
