Financial Times FT.com

Beijing assures Pakistan of support for debt payments

By Farhan Bokhari in Islamabad and Mure Dickie in Beijing

Published: October 17 2008 03:00 | Last updated: October 17 2008 03:05

China has assured Pakistan it will not be forced to default on upcoming international debt payments, Pakistani officials have said.

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 year to June 2009, as its currency weakens and foreign currency reserves decline.

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