Despite the growing cooperation between Beijing and Islamabad, the Chinese government has decided to forego direct payments to Pakistan's central bank as the already roiling country teeters on the brink of financial ruin.  By all appearances, Pakistan will now be forced to go the IMF, something most governments try to avoid if at all possible.  They all know what that means.

President Asif Ali Zardari returned from China late Friday without a commitment for cash needed to shore up Pakistan’s crumbling economy, leaving him with the politically unpopular prospect of having to ask the International Monetary Fund for help.

Pakistan was seeking the aid from China, an important ally, as it faces the possibility of defaulting on its current account payments.

With the United States and other nations preoccupied by a financial crisis, and Saudi Arabia, another traditional ally, refusing to offer concessions on oil, China was seen as the last port of call before the I.M.F.

Accepting a rescue package from the fund would be seen as humiliating for Mr. Zardari’s government, which took office this year.

Furthermore, it appears that the terrorist crutch Islamabad generally employs in seeking favour is not working, neither on China nor anyone else.

An I.M.F.-backed plan would require Pakistan’s government to cut spending and raise taxes, among other measures, which could hurt the poor, officials said.

The Pakistanis have not been shy about exploiting the terrorist threat to try to win financial support, a senior official at the I.M.F. said.

But because of the dire global financial situation, and the reluctance of donor nations to provide money without strict economic reforms by Pakistan, the terrorist argument has not been fully persuasive, he said.

“A selling point to us even has been, if the economy really collapses this is going to mean civil strife, and strikes, and put the war on terror in jeopardy,” said the official…

“They are saying, ‘We are a strategic country, the world needs to come to our aid,’ ” he said.

The global financial situation is creating a massive withdrawal aid for troubled nations.  And Pakistan appears to have milked dry the teat of terrorism.  At least for now.