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.