China offers $500 million to Pakistan
14 Nov 2008
China has offered to lend up to $500 million to Pakistan as part of its obligation to address concerns over the global financial market crisis and the ensuing economic slump.
China's offer was announced in a statement issued by Shaukat Tarin, economic adviser to Pakistan's prime minister.
The move comes after the Japanese offer to lend up to $100 billion to an IMF bailout fund.
China and Japan are the two Asian countries with the largest dispossable resources at their command. But, for China, the only country with a larger foreign-currency stock than Japan, with nearly $2 trillion in reserves, it's a much smaller donation.
It is also more symbolic of its economic power and it also seems to suggest that China has in fact grown beyond the IMF and is taking a stronger and independent economic role internationally.
Beijing, however, has not confirmed the proposal and it is also not sure, how far will Beijing go. China, which is more preoccupied with protecting its own economy, has also played down expectations of any major infusions world-wide.
It is also unsure if China will announce bailout package for any other country or join a wider bailout programme at the G20 summit.
China has, however, made it clear that its priorities are for improving international financial regulation and ''fairness'' in the global financial system.