China seconds FT’s report about extending its financial support to Pakistan

BEIJING: Chinese foreign ministry has acknowledged that the country was extending a financial package to support Pakistan’s rapidly diminishing foreign exchange reserves, ARY News reported on Thursday.

It is the first official confirmation by China about Beijing’s plans to financially support Pakistan in the current government’s tenure.

Lu Kang, the Chinese foreign ministry spokesman, in his daily media briefing in Beijing said: “The Chinese side has offered and will continue to offer its best through assistance, trade, investment and all-around practical cooperation to support and boost Pakistan’s economic and social development.”

He was responding to a question about a Financial Times report, which said that China had pledged to lend at least $2bn to Pakistan to shore up its foreign exchange reserves and prevent further devaluation of the rupee against the dollar.

On January 1, the Financial Times, a Britain newspaper had claimed that China is going to transfer $2bn to Pakistan, to stabilise its financial condition.

The report had said that Pakistan’s old friend China does not want to see Pakistan going through economic turmoil, and had decided to support it with $2bn in aid.

“The aid would be helpful in boosting Pakistan’s foreign reserves,” the report read.

Pakistan is also holding talks with the International Monetary Fund (IMF) for another bailout package, the next round of negotiations to take place in the running month.