(Brecorder, Apr 18, 2007) Pakistan and China on Tuesday signed 27 agreements and memorandum of understandings (MoUs) in the public and private sectors besides extending co-operation in defence, space technology, establishment of a joint investment company and avoidance of double taxation.

However, Pakistan side remained tight-lipped on issues like setting up of more nuclear power stations and the fate of much delayed 969 mw Neelam Jhelum hydropower project in AJK.

"We are re-energising our existing relations and my one on one talks with the Chinese premier were very constructive and productive," said Prime Minister Shaukat Aziz, while briefing journalists after his first day of hectic engagements. Foreign Affairs Secretary Riaz Muhammad Khan and Pakistan Ambassador to China Salman Bashir were also present in the press conference.

Shaukat Aziz, who was looking very happy after the meeting, said the issue of Thar coal and railway engines did not come under discussion, but he asked Chinese banks to invest in Iran-Pakistan-India (IPI) gas pipeline which is a viable project.

Asked if Pakistan discussed establishment of more nuclear power plant, the prime minister said that both sides discussed several issues, but these discussion held within the room.

Fourteen agreement and MoUs which were signed between the two governments are: Co-operation between the Karachi Stock Exchange (KSE) and the Shanghai Stock Exchange (SSE), MoU on construction of cable system between China and Pakistan, treaty on mutual judicial assistance in criminal matters, agreement on implementation regulation for five-year development programme on economic co-operation.

MoU on co-operation between the National Development and Reform Commission (NDRC) of China and the Planning Commission of Pakistan, Protocol-2 to the agreement on avoidance of double taxation, MoU on co-operation between the Ministry of Industry and Production and the NDRC, framework agreement between China National Space Administration (CNSA) and Suparco on deepening co-operation in space science technology.

Both countries also inked MoU on co-operation between the Foreign Service Academy and the Chinese University of Foreign Affairs, MoU on establishment of Pakistan Study Center at the Peking University, agreement on economic and technical co-operation, and MoU on establishment of engineering university in Pakistan.

"We had written things as I read before my counterpart said OK and even at some stage when I missed one thing he reminded me," he added. Shaukat Aziz said that both countries would achieve the target of $15 billion bilateral trade in five years as trade and investment relations are becoming more stronger.

He also met with the heads of Bank of China, China Development Bank(CDB) and Exim Bank and invited them to invest in Pakistan. The CDB governor, in his remarks, said that there was a broad range for co-operation between the two countries and a consortium could be formed for joint investments in various areas.

The prime minister was of the view that there was need for close co-operation between the private sector of both the countries, adding that Chinese private sector is very keen to invest in Pakistan.

Shaukat Aziz, who held 40 minutes one on one talks with Chinese Premier Wen Jiabao was more than happy with the outcome of the meeting. "Today, I will meet Chinese President and the Vice Prime Minister to discuss further co-operation in different fields," he said.

The prime minister also held a meeting with CEOs of China mobile and telecom operators who showed interest in investing in Pakistan. "We are open economy and welcomes investors, providing a level playing field to both the local and foreign companies," he maintained.

Both Wen Jiabao and Shaukat Aziz also discussed Pak-India relations, international issues like Iran, Afghanistan, North Korea and terrorism. "We are very close in several areas and have similar thing on issues like Iran," he said, adding that both countries would work together in such matters.

Earlier, the private sector of China and Pakistan signed 13 agreements for setting up automobile plant, power, industrial zone, construction of new Gwadar airport dairy development, power sector besides collaboration in agro industry, real estate tourism and other mega infrastructure projects.

The agreement signing ceremony was witnessed by Industries and Production Minister Jahangir Khan Tareen and Chinese Deputy Minister Huang Yue Jin. Speaking on this occasion, Tareen said the private sector has been a major factor in rapid economic growth of Chinese economy and the All China Federation of Industries and Commerce (ACFIC) being the representative body of the nearly two million enterprises could play a very important role in expanding co-operation between the private enterprises of both the countries. He also said that 61 projects have been enlisted in which public and private companies from both countries could participate.

Tareen said that Pakistan has also approved preferential policies for Chinese businessmen investing in such industrial parks, which include total exemption from customs duty on import of machinery and equipment and income tax holiday for five years.

He emphasised that the private sector of both the countries should take advantage of the opportunities available and create win-win situation both for their businesses as well as for their respective countries.

Earlier, the Chinese Deputy Minister of the United Front Work and Deputy Chairman of China society of promotion of the Guangcai programme said that the friendship of both the countries is time-tested. Privatisation and Investment Minister Zahid Hamid, Planning Commission Deputy Chairman Akram Shaikh, Navtec Chairman Altaf Saleem were also present during the agreement signing ceremony.

Source:Brecorder.com