Such a pledge would offer a potentially crucial boost to Pakistan, which faces a $10bn (€7.5bn, ￡5.8bn) gap in external financing in the financial year to June 2009, amid a falling currency and declining liquid foreign currency reserves.
One senior Pakistani government official said Beijing's backing “begins with $500m with the promise to go upwards”.
Asif Ali Zardari, Pakistan's president, is currently visiting Beijing. A second Pakistani official said Mr Zardari had been assured by Chinese leaders of their determination “to not let Pakistan default on foreign repayments”.
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