Pak-China relationship to achieve new dimensions of economic cooperation

ISLAMABAD—Pakistan-China relationship gets a new impetus following historic visit of Chines President Hu Jintao who witnessed signing of a number of agreements aimed at boosting socio-economic relations between the two countries.
Pakistan and China concluded eighteen important agreements in public sector including FTA to further boost economic development process and strengthen contacts between people of the two friendly countries. The signing of important documents will lay a strong foundation for consolidating their multi-dimensional strategic partnership, particularly of the economic sector.
The agreements signed by both sides covered wide-ranging areas of common interest, including trade, energy, communication and agriculture. The Free Trade Agreement (FTA) to be effective from July 1, 2007 willreduce tariffs to zero level on hundreds of items for imports and exportsbetween the two countries.
Pakistan is the third country in the world after ASEAN and Chile with whom China entered into formal accord for establishing a free trade regime. The two countries also made another major breakthrough in the bilateral ties by finalising a five-year joint development programme on Trade and economic cooperation and establishing a Joint Investment Company.
Certain items have been identified to get their access to Chinese market. Pakistanis importers will get substantial duties’ reduction on export of raw textile material, mineral products, chemicals and fish. The joint investment company will provide an institutional mechanism, providing financial support to the private sector for undertaking joint ventures.
Under another agreement, the two countries will collaborate in expanding Saindak project in Balochistan. The other documents signed between the two countries will authorise the relevant departments to establish Consulate General of Pakistan in Chengdu and launch executive programme of the cultural agreement between the two countries for the year 2007-2009. It also included agreement on economic and technical cooperation in specific fields and exchange of letters authorising the construction of China-Pakistan Friendship Centre in Islamabad.
The agreement also envisages framework agreement on security of financing for China-Pakistan bilateral cooperation and Exchange of Letters authorising construction of schools and hospitals in earthquake-hit areas in Pakistan. A number of MoU regarding financial support for up-gradation and rehabilitation of Karakorum Highway and Transfer of completion certification of Gwadar port (phase-I) were signed.

—APP