Pakistan and China will initiate talks next week in Islamabad to prepare a five-year plan of economic Co-operation, particularly in the fields of trade, energy, road construction, urban development, telecommunication and agriculture.
The delegation led by Chinese Assistant Commerce Minister Fu Ziying duo on Monday. During the first round of talks, the two sides will exchange their respective proposals and decide parameters of economic collaboration in the economic sector during the next five years.
Official sources told APP here Thursday that it was decided during the recent visit of President's Pervez Musharraf to Beijing that the two countries will work out a five-plan, giving clear-cut direction to their bilateral Co-operation in the economic sector. It was hoped that a long-term plan would promote consistency in the economic Co-operation and help to increase trade volume, bringing it in conformity with their excellent diplomatic ties.
According to the sources, the two sides will identify new areas of Co-operation and lay down business and investment targets for the next five years. The proposed plan will also help to sort out and remove certain difficulties and anomalies, being faced by the business communities in bringing their mutually beneficial economic partnership to a higher level.
The two sides also decided to expedite the process of on-going negotiations for signing of Free Trade Agreement (FTA) by the end of this year. They also agreed to set up a joint investment company (JIC) this year, with an initial capital of about $500 million.
Such steps are aimed at pushing forward China's participation in the economic development of Pakistan on a regular and long-term basis. The officials of their relevant departments are also expected to meet soon to discuss and finalise legal and financial framework of the company.
Pakistan has already worked out similar arrangements with other countries for financing development projects. Such as establishment of Saudi-Pak Investment Company, Pak-Kuwait Investment Company, Pak-Libya Investment Company, Pak-Oman Investment Company.