China to fund development projects

Islamabad: China assured full support in financing of various ongoing and planned infrastructure development programs in Pakistan as it believed that an economically strong Pakistan would bring prosperity to its people and strengthen the region.

Governor China Development Bank Chen Yuan who called on President Pervez Musharraf here, evinced keen interest of his bank in providing funding for several development projects in Pakistan.

He said the CDB could provide support for Bhasha-Diamer Dam, the proposed rail link along the Karakoram Highway that may also have an oil and gas pipeline, besides development of additional facilities at the Gwadar Port.

President Pervez Musharraf said the Pakistan-China joint infrastructure development ventures would not only strengthen ties between the two countries, but also help bring stability and prosperity to the region, by enhancing transit trade and greater interaction among the regional countries.

Over the past decade, CDB has issued an accumulated total of 1.6 trillion RMB in loans to more than 4,000 projects involving key fields of infrastructure, and basic and pillar industries, mostly in China.

The Joint Investment Company between Pakistan and China was established in November 2006 to implement the joint economic cooperation plan. The company is working as a window of the China Development Bank for evaluation of joint ventures between the two countries.

Minister for Defence Chaudhry Ahmed Mukhtar, Minister for Foreign Affairs Shah Mahmood Qureshi also attended the talks. Later, Chairman CPPCC Jia Qinglin hosted a banquet in honour of President Pervez Musharraf and his delegation.

Pakistan and China have made substantial progress towards entering a Transit Trade Agreement, expanding the scope of Free Trade Agreement, besides identifying new areas of cooperation to further strengthen their multi-faceted ties.

The President who is on a six-day visit to China to hold wide-ranging talks with its leaders made significant headway on a host of issues during the several rounds of talks with the Chinese leaders including President Hu Jintao and Premier Wen Jiabao.

President Pervez Musharraf who arrived here in China's capital after attending the annual Boao Forum for Asia and holding talks with President Hu Jintao at Sanya, in Hainan Island met Premier Wen Jiabao at the Prime Minister Office - Zhong Nanhai. The two leaders reaffirmed their resolve to further strengthen their ties in all spheres.

President Pervez Musharraf said he was here in China to see its progress and rapid development. 'We rejoice the success, achievements and progress of China that remains our time-tested and all-weather friend,' President Musharraf said. Premier Wen Jiabao said the visit of the President would further promote the friendly ties between the two countries.

He said the two leaders have had several meetings over the past several years that signified the excellent relations the two countries had. Foreign Minister Shah Mahmood Qureshi told APP that in several rounds of talks the two sides also discussed the need for adopting 'corrective mechanism' to offset their trade imbalance.

He said the two countries have agreed on a five-year trade and economic development plan, and the projects falling in this category will get concessional credit.

Both the countries also identified several new areas, where they can extend cooperation through the already existing mechanism. Pakistan and China signed a free trade pact in 2006 that covers goods and investments and are looking at ways to add the segment of Trade and Services besides raising the two-way trade to US 15 billion dollars much before the stipulated time.

Bilateral trade between the two countries is around US 7 billion dollars. The two countries also inked three more agreements on cooperation between the Ministries of Finance, town planning and construction and Pakistan Television Corporation and the China Central Tel