India on Wednesday said it has lodged strong protests with China and Pakistan over the proposed bus service between the two countries through Pakistan-occupied Kashmir (PoK) under the so called "China-Pakistan Economic Corridor" or "CPEC" project.
Pakistan's government has "inherited a very hard economic situation", Khan told Xi.
The minister went on to say that the prime minister's China visit would rid the country out of economic crisis.
On Sunday, he will head to Shanghai for the China International Import Expo, where he will lead a delegation of 76 government officials and business leaders, and deliver a keynote speech. Khan had initially vowed to curb borrowing, but has proceeded with projects such as one to build 5 million public housing units and has predicted that Pakistan would soon overcome its economic woes. Unfortunately, our country is going through a low point at the moment with two very big deficits, a fiscal deficit and a current account deficit.
Xi assured Khan that China considers its relations with Pakistan a diplomatic priority.
India opposes the project because the creation of the corridor envisages Chinese and Pakistani economic activity in the Gilgit-Baltistan area of the disputed Jammu and Kashmir region.
During his visit to Saudi Arabia last month, Riyadh committed $6 billion funding which included $3 billion deferred payment for oil imports.
An IMF delegation is due to visit China next week and the Khan government wants to minimise the bailout package it seeks from the worldwide lender.
Khan will meet Chinese Premier Li Keqiang on Saturday (today), when the two countries are expected to sign a series of agreements.
Foreign Minister Shah Mahmood Qureshi, Finance Minister Asad Umar, Railways Minister Sheikh Rashid Ahmed, Minister for Planning Makhdoom Khusro Bukhtiar, Adviser to Prime Minister on Commerce Abdul Razzak Dawood, Balochistan Chief Minister Jam Kamal Khan and Pakistan Ambassador to China Masood Khalid were also present during the meeting.
"Khan has posited that Chinese and Saudi financial assistance will reduce the amount Pakistan needs to borrow from the International Monetary Fund, mitigating Pakistan's susceptibility to the United States demands that its CPEC debt be transparent".
The India-occupied Jammu & Kashmir remains the most militarized zone in the world, where the occupation forces are killing and maiming people on a daily basis.
Pakistan has said the project isn't a major contributor to Pakistan's debt or a cause of the "financial difficulties it faces now faces", Lu said, adding that discussions will focus on "how to better drive forward with the building of the project".
He hailed the China-Pakistan all-weather strategic cooperative partnership as a special friendship shaped and developed during a long time of mutual support and close cooperation.