ISLAMABAD – China has once again stepped in to rescue Pakistan from thedeep financial crisis forcing Pakistan to seek IMF bailout.

Pakistan has been guaranteed financial backing from People’s Republic ofChina as the incoming Imran Khan-led Pakistan Tehreek-e-Insaf governmentlooks to avoid going to the IMF to stablisie foreign exchange reserves,reported Financial Times.

PTI leaders have been told by Chinese government that they will get furtherloans from Beijing over the coming months as one way to keep their currencystocks topped up.

“Chinese state-backed banks have lent Pakistan more than $5bn in the pastfinancial year as Islamabad has become increasingly reliant on its northernneighbour to secure its finances,” said a report published in the FinancialTimes.

One prospective cabinet minister told the FT: “China has promised tocontinue helping Pakistan overcome the crunch on foreign payments.” Anothersenior party leader said: “The Chinese have signalled their intent to keephelping Pakistan avoid a crisis, a default.” But he added that Chineseofficials have urged their Pakistani counterparts “to take steps to reducethe large deficit”.

Prime Minister-elect Imran Khan’s first tasks is expected to be repairingthe country’s balance of payments problem, with high imports and lowexports having left it with only $10.4bn in foreign currency.

Officials have drawn up plans for the new government to approach the IMFfor a bailout worth up to $12bn, which would be Pakistan’s 13th bailoutfrom the fund and its largest ever.

The US, the IMF’s biggest shareholder, has urged the fund not to issue aloan unless Islamabad publishes full details of the loans it has taken fromChina to pay for a $60bn infrastructure scheme.

With Islamabad and Beijing reluctant to reveal loan details, officials inthe Pakistani government have begun to explore other sources of funding.

Asad Umar, the expected finance minister, said turning to the IMF as a“fallback option”, to be sought once other routes had been explored.

One finance ministry official told the FT: “Clearly, we mustn’t put all oureggs in the IMF basket. At least for the sake of argument, our future plansshould also include a back-up which is built on Chinese money.”