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.

One senior Pakistani government official said Beijing's backing "begins with $500m with the promise to go upwards".

Asif Ali Zardari, Pakistan's president, is visiting Beijing. A second Pakistani official said Mr Zardari had been assured by Chinese leaders of their determination "to not let Pakistan default on repayments".

"The message from Beijing was strong, precise and reassuring to our side," the second official said.

Chinese foreign ministry officials yesterday declined to comment on whether Beijing had promised any financial assistance or signed an agreement on expanded co-operation on nuclear power.

In a meeting yesterday, Wen Jiabao, Chinese premier, assured Mr Zardari that Beijing would "continue to offer all possible assistance to help Pakistan overcome its current economic difficulties and strengthen its self-development capacity", Chinese media said.

China has more than $1,900bn in foreign exchange reserves. However, some Chinese scholars have said that the level of support that Beijing can give Pakistan is limited, since China faces huge domestic poverty and developmental challenges.

*Singapore and Malaysia yesterday pledged to guarantee all local and foreign currency bank deposits, joining governments worldwide in shoring up confidence in the global banking system.

The neighbouring south-east Asian countries announced within minutes of each other they would guarantee bank deposits until December 2010.

Meanwhile, Susilo Bambang Yudhoyono, the president of Indonesia, yesterday added to calls for the south-east Asian nations to hold a summit in Beijing next week to discuss measures to deal with the financial crisis.