Pakistan PM Imran Khan does not get bailout from China

Pakistan PM Imran Khan meets Chinese President Xi Jinping Photograph:( Reuters )

WION Web Team Pakistan Nov 05, 2018, 02.24 PM (IST)

As Imran Khan ends his three-day visit to all-weather ally China, the Pakistan Prime Minister's tour did not pan out the way he expected. 

After he won a US $6 billion loan from Saudi Arabia, Khan was hoping for a similar response - but that has not happened. 

Beijing remained silent about Islamabad's need for immediate financial support. But, talks over issues involving India were thoroughly discussed. 

A joint statement, issued hereafter Prime Minister Imran Khan's talks with Chinese President and Premier Li Keqiang, said that China backed Pakistan's efforts to improve ties with India to settle "outstanding disputes", without directly mentioning the Kashmir issue.

"China appreciates Pakistan's quest for peace through dialogue, cooperation and negotiation, on the basis of mutual respect and equality, and supports Pakistan's efforts for improvement of Pakistan-India relations and for settlement of outstanding disputes between the two countries," the joint statement said.

Over Islamabad issue, Khan said that he expected Chinese support to build exchange reserves and avoid a possible bailout from IMF. 

Pakistan is drowning under the weight of his debt with foreign exchange reserves down to US $8 billion - barely enough to cover two months of exports. 

While a bailout from the international monetary fund seems inevitable, Pakistan is having second thoughts about it.

The IMF bailout will come with tough conditions -- IMF would examine with a forensic microscope Pakistan's various agreements on the China-Pakistan economic corridor or CPEC.

All weather friends, China and Pakistan also agreed to enhance their defence cooperation. China is the main supplier of defence equipment for Pakistan.

They agreed to further enhance defence cooperation, maintain high-level visits and exchanges at various levels between relevant departments of the two armed forces, the joint statement said.

Both sides have agreed to make full use of the China-Pakistan Defence and Security Consultation mechanism, deepen cooperation in areas such as military exercises, training cooperation, personnel exchanges, and equipment and technology cooperation, it said.

Story highlights

Beijing remained silent about Islamabad's need for immediate financial support. But, talks over issues involving India were thoroughly discussed.