London, Oct 21 (China Military News cited from Jane's Defense News by Trefor Moss) -- A four-day visit to Beijing by Pakistani President Asif Ali Zardari ended on 17 October with China agreeing to sell two new nuclear reactors to pakistan.

However, Zardari failed to secure badly needed financial assistance, in spite of the warm relations between the two countries.

According to sources close to the talks, Zardari asked China for a cash deposit of up to USD3 billion: money that pakistan needs if it is to avoid defaulting on its current-account payments. Islamabad has a current-account deficit of about USD4 billion and a funding gap of USD10 billion for the financial year to June 2009.

Chashma Nuclear Power Plant constructed by China

The Chinese rebuttal means that pakistan will almost certainly have to turn to the International Monetary Fund to help it through an economic crisis driven by high food and fuel prices that, alongside a protracted war against militants in the country's northwest, threatens pakistan's stability.

However, Shah Mehmood Qureshi, pakistan's foreign minister, on 18 October chose to stress the "deep understanding" between the two countries as he announced the civil nuclear deal.

No announcement was made on the potential purchase of up to 36 J-10 fighter aircraft by pakistan, although the deal is believed to have been on Zardari's agenda.

J-10 fighter with Air-refuelling Probe

pakistan already operates a Chinese reactor at Chasma in Punjab, where the new reactors will be built, with a second currently under construction at the same site.

Western defence officials said this latest agreement demonstrated that China was prepared to overlook concerns surrounding pakistan's nuclear programme stemming from the sale of nuclear technology to Iran, Libya and North Korea by the programme's founder AQ Khan.

pakistan has sought a civil nuclear agreement from the United States to counterbalance Washington's agreement with India, but has been denied such a deal because of Khan's activities.

Pakistani officials renewed their pledge to keep tough safeguards in place surrounding the nuclear programme, including those introduced following the Khan affair. "The world must eventually recognise the systems now in place to control any leakages," a senior Pakistani official told Jane's .

Defence experts believe pakistan possesses up to 60 nuclear bombs made with uranium and another 10 plutonium-based weapons.