China to expand aid to Pakistan

Beijing: Pakistan's president met with China's premier on Thursday, a day after clinching agreements aimed at boosting Chinese involvement in his country's ailing economy.

Premier Wen Jiabao told Asif Ali Zardari and his delegation that China is ready to advance strategic co-operation with Pakistan, the official Xinhua News Agency reported.

Wen pledged to help Pakistan overcome its economic problems by offering assistance; however, he did not specify what type of aid China would provide.

Zardari, elected last month, also held talks with top legislator Wu Bangguo and other senior Chinese leaders, along with major figures in finance, infrastructure, energy and telecommunications, state media reported.

Separately, Foreign Ministry spokesman Qin Gang told reporters at a regular news briefing that Beijing stands ready to assist Pakistan.

"As an all-weather friend, China understands that Pakistan is facing some financial difficulties and we're ready to support and help Pakistan within our capability," Qin said, adding that the two governments' financial officials will "keep in communication."

On Wednesday, Zardari met President Hu Jintao and highlighted the historic friendship between the two countries. Such ties loom large as Pakistan seeks assistance in alleviating an economic crisis brought on by higher food and energy prices.

Pacts

Agreements signed between the two countries included deals on economic and technical co-operation, minerals, environmental protection, agricultural research and electricity.

Specifics of the deals were not immediately available, but the state-run China Daily newspaper said on Thursday that one of the agreements was for China to launch a telecommunications satellite for Pakistan in the first half of 2011 from a launch centre in Sichuan, in China's southwest. A possible deal between the countries on civilian nuclear power was not mentioned.

Ties between Pakistan and China have long been founded on mutual suspicion of joint neighbour India, against which both have fought border wars.

In recent years, however, trade relations have moved to the fore as China's economic influence in the region begins to overshadow political concerns.

Pakistan's manufacturing sector has suffered from cheap Chinese imports while the economy has benefited from Chinese investment and cut-rate prices for infrastructure projects such as roads and telecommunications.