Task force formed to assess Pakistan's financial needs.

Byline: Shahbaz Rana

ISLAMABAD -- China, for the first time, has set up a task force to assess Pakistan's financial needs for keeping its all-weather friend afloat, deviating from its earlier practice of quietly bailing out the country in times of stress.

Pakistan announced the constitution of the task force on the balance of payments (BoP) support and giving market access for Pakistani goods at the end of Prime Minister Imran Khan's five-day visit to China. The announcement also killed false rumours that China had placed $4.5 billion with the State Bank of Pakistan (SBP) as a result of the premier's visit. During the visit, the two sides held discussions on immediate market access for Pakistan's export goods as well as BoP support, according to a statement issued by the Ministry of Finance on Tuesday.

It said, 'The top Chinese leadership expressed their strong support and a task force was established by both sides to discuss the matters further.'

A Pakistani delegation will leave this week to hold negotiations with China. The delegation will leave a day after the IMF starts negotiations with Pakistan for a possible bailout package. The IMF team will reach Islamabad on Wednesday (today) and talks are expected to continue for nearly two weeks.

Pakistan has already secured a $6-billion aid package from Saudi Arabia and is also looking for another assistance of $6 billion from the United Arab Emirates (UAE). PM Khan had to go to Saudi Arabia twice in five weeks to secure the bailout package.

The government is trying hard to get maximum short-term support from friendly countries aimed at avoiding a big and front-loaded bailout package from the IMF. A front-loaded IMF package will be tagged with more harsh conditions, said sources in the finance ministry.

In its handout, the finance ministry stated that a senior-level delegation, comprising federal secretaries of finance Arif Ahmad Khan, foreign affairs Tehmina Janjua, planning and development Zafar Hasan and commerce Younus Dagha, along with State Bank of Pakistan Governor Tariq Bajwa, will go on the visit to China.

The delegation will leave on Thursday 'to work out the modalities with the Chinese authorities in their respective areas', stated the finance ministry. Beijing's decision to set up the task force to determine Pakistan's financial requirements for averting a balance of payments crisis is contrary to its past practices. Historically, China has given money after holding talks at the...