Pakistan CRISIS: Imran Khan warns of ‘very difficult’ situation as economy faces COLLAPSE
PAKISTAN’S new Prime Minister Imran Khan has admitted his county is facing a “very difficult” situation as a fast-growing financial crisis threatens to cripple the nation’s economy.
Pakistani PM Imran Khan meets President Xi Jinping in Beijing
The South Asian country is in desperate need of a further bailout despite receiving a £4.6billion ($6bn) rescue package from Saudi Arabia just last month.
Former cricket star Imran Khan took office in August after a landslide victory but the looming crisis over Islamabad’s dwindling reserves of foreign currency mean it could soon run out of cash to pay its debts.
Pakistan is now hoping to secure help from the International Monetary Fund (IMF) to avert the crisis in what would be the nation’s 13th rescue package from the lender in 30 years.
During a trip to China today, Mr Khan acknowledged his country has hit a “low point”.
He said: "My party has only been in power for two months. Unfortunately we have inherited a very difficult economic situation.
"Countries go in cycles. They have their high points, they have their low points.
“Unfortunately, our country is going through a low point at the moment with two very big deficits, a fiscal deficit and a current account deficit.”
China is one of Pakistan’s closest allies, and the Asian superpower today pledged to continue helping Mr Khan.
Chinese premier Xi Jinping said: "I attach great importance to China-Pakistan relations and am willing to work together with the prime minister to strengthen the China-Pakistan all-weather strategic partnership and build a new era of China-Pakistan destiny.”
But while neither leader mentioned economic aid in front of reporters, China’s top diplomat guaranteed support from Beijing in a separate meeting with his Pakistani counterpart.
State Councillor Wang Yi said: "The Chinese side will continue to provide support and help to the best of its ability for Pakistan's economic and social development and national construction.”
Pakistan is already highly dependent on China as the bulk of the foreign loans inherited by Mr Khan’s government are with Chinese lenders.
And the £46bn ($60bn) China-Pakistan Economic Corridor - a series of major new roads and railways - will bring the two nations even closer together.
But Mr Khan’s government is seeking to change the deal to include more projects which benefit social development rather than just focussing on infrastructure.
One of his key election pledges was to reduce poverty for Pakistan’s 197 million residents.
Mr Khan’s trip to China comes amid unrest at home over the acquittal of a Pakistani Christian woman on death row for blasphemy.
Mother-of-three Asia Bibi is due to return home after serving eight years in prison for allegedly insulting Islam's Prophet Muhammad.
But protests by radical Islamists who are calling for her to be publicly hanged have blocked roads and delayed her release.