Wow 15Bn is a mammoth figure?What are goods traded btw Pakistan and China as of now?
FTA to raise trade to $15 billion: 31 agreements and MoUs signed with China
RAFIQ GORAYA & MUHAMMAD BILAL
ISLAMABAD (November 25 2006): Pakistan and China on Friday signed Free Trade Agreement (FTA) and 30 other agreements/ MoUs in the public and private sectors to strengthen and expand their strategic partnership and economic cooperation in all fields. Chinese President Hu Jintao and President General Pervez Musharraf witnessed the signing at the Aiwan-e-Sadr.
Officials said that the FTA, effective from July 1, 2007, would reduce tariffs to zero rates on hundreds of items for import and export between the two countries, reduce trade imbalance, which is in favour of China, cut duties on Pakistan's exports, and increase bilateral trade to $15 billion in five years.
Pakistan and China also signed a multi-faceted five-year joint development programme on trade and economic cooperation and establishing a joint investment company to pave the way for billions of dollars Chinese investment in Pakistan in different sectors including agriculture, energy, communication, infrastructure, tourism, housing and industry.
OTHER AGREEMENTS AND MOUS SIGNED BETWEEN THE TWO COUNTRIES WERE:
1. Agreement on security of financing for China-Pakistan bilateral cooperation.
2. Exchange of Letters authorising construction of schools and hospitals in the October 8 earthquake-hit areas in Pakistan.
3. MoU regarding $337 million Chinese financial support for upgradation and rehabilitation of Karakorum Highway.
4. Transfer of completion certification of Gwadar port (Phase-I).
5. Authorising the relevant departments to establish Consulate-General of Pakistan in Chengdu.
6. Executive program of cultural agreement between the two countries for 2007-2009.
7. Contract agreement on KKH improvement project (Raikot to Khunjerab).
8. Framework agreement between China North Industries Corporation and Heavy Industries, Taxila (HIT).
9. Huawei-PTML-PTML GSM Phase-V expansion project contract agreement.
10. MoU between China Zhenhua Oil Company Limited and Ministry of Petroleum and Natural Resources.
11. Agreement on exploration and development of Saindak East project.
12. Agreement between Qingqi Group and National Bank of Pakistan on collaboration in President's Rozgar scheme.
13. China's PVC back integrated complex on Engro Asahi Polymer and Chemical Limited Pakistan.
PRIVATE SECTOR AGREEMENTS In addition to the 17 agreements, representatives of leading Chinese and Pakistani companies also inked nearly 13 agreements and Memorandums of Understanding worth $3 billion to undertake joint ventures in various sectors of hotels, housing, industrial parks, cement, fertiliser, transport, pesticides and others.
Major Chinese companies which signed agreements include China International Industry and Commerce Co Ltd (CIIC Group); Ningxia Building Material Group China; China National Chemical Engineering Group Corporation; International Business Incubator of China; Tianjin Renong Pesticide Industries Co Ltd; CETC International Co Ltd; Great United Petroleum Holdings Co Ltd; and GingKo Petroleum and Chemical Company Limited.
The agreements were signed from Pakistan side by The Board of Investment, Army Welfare Trust, National Logistic Cell, Federal Government Employees Housing Foundation, Housing and Works Ministry, Ruba Group of Pakistan, Fatima Fertiliser Limited, Incubator Centre of National University of Science and Technology (NUST), Pak-China Chemical, Motherhood (Pvt) Ltd, Pakistan Petroleum Limited, and Infrastructure Development Company (Pvt) Ltd.
Board of Investment officials said that an umbrella MoU between Pakistan and China was also signed under which these projects will be implemented within the next five years.
They said that Chinese investment in the public sector of Pakistan has always been very impressive, and described the signing of these agreements and MoUs as a big breakthrough in the private sector investment, which would be followed by more significant investments in near future. They said that the economic relations between the two countries were robust and strong.
China has made valuable contribution to Pakistan's economic development, particularly in the development of infrastructure and setting up of basic industries.
Beijing is also helping Islamabad in the development of Gwadar deep-sea port, whereas more than 50 Chinese companies are working in Pakistan in oil and gas, IT and telecom, power generation, engineering, automobiles, infrastructure and mining sectors.
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