China eyes greater trade with Pakistan
China eyes greater trade with Pakistan
ISLAMABAD (Reuters): Chinese Prime Minister Zhu Rongji said on
Saturday his country and Pakistan ought to step up economic
cooperation, and praised the record of Pakistan's military ruler
since he took power 18 months ago.
"We are convinced that with the joint efforts of both sides,
China-Pakistan economic cooperation will be surely brought to a
new high in the new century," Zhu told a gathering of Pakistani
businessmen.
Zhu arrived in Islamabad on Friday and held discussions on
regional and economic matters with General Pervez Musharraf.
The two sides signed seven project agreements which officials
say might involve about $500 million of investment by Chinese
companies in Pakistan.
Zhu said Musharraf had also asked for Chinese support in
developing Pakistan's Gawadar port and a coastal highway in
Baluchistan province.
"Last year Pakistan-China trade hit a record high of $1.16
billion, doubling that of 10 years ago," he told a lunch held by
the Federation of Pakistan Chambers of Commerce and Industry
(FPCCI).
Zhu praised Musharraf's record since he took power in a
bloodless coup. "Your country is more stable and the downward
spiral of the economy has been reversed and the people's living
standard has also improved somewhat," Zhu said.
Musharraf has begun political and economic reforms and tried
to improve the investment image of Pakistan after it was badly
tarnished by a row with foreign-backed power companies.
The International Monetary Fund extended a standby loan last
year to tide the country over a balance of payments crisis and
talks are expected soon on a longer term program. Islamabad also
expects fresh funding from the World Bank and the Asian
Development Bank.
FPCCI president Iftikhar Ali Malik said the balance of trade
had always been in China's favor. "We would like to see the
volume of bilateral trade grow further in a more balanced
manner," he urged.
Zhu said China might send a team to look into commodity
imports from Pakistan as a way of making trade more balanced.
Zhu is also due to visit Sri Lanka, the Maldives and Thailand
during an 11-day foreign tour.