Another Pak-China FTA on trade, services soon: Musharraf

Another Pak-China FTA on trade, services soon: Musharraf
By Correspondent

URUMQI: President Pervez Musharraf Tuesday said Pakistan and China are close to signing another Free Trade Agreement on trade and services that will further boost the economic and commercial ties between the two countries. Addressing the China Xinjiang-Pakistan Economic Forum here at the capital of autonomous region, the President urged more closer cooperation between Pakistan and China in commerce, trade, investment and joint investments between the two countries’ private sectors.

The President informed the business leaders that there was immense scope for investment in energy sector especially coal powered, solar and hydro electricity.

He said Pakistan and China are also discussing setting up of more nuclear power generation plants to help meet the requirements of fast expanding industrial and domestic sector.

The President said the governments can only provide an enabling environment, while it was up to the private enterprises to play their role in boosting economic ties.

President Musharraf wooed Chinese entrepreneurs to inject more investments in Pakistan and said they stand to benefit more as the ties between the two countries continue to grow stronger over the time.

He said Pakistan has proposed an integrated border management regime and Transit Trade agreement.

The President said keeping in view close friendly ties between the two countries, special investment zones will be created in Pakistan for the Chinese entrepreneurs.

He said there was a vast scope for investment in agriculture, agro-based industry and livestock breeding in Pakistan. He said Pakistan and China can also cooperate in textile sector with the Chinese companies relocating to have swifter and cheaper access to new markets in Africa and Europe.

The President invited Bank of China to enter Pakistani banking scene so as to facilitate the business communities of the two countries and said several foreign banks were already operating in Pakistan.

He said trade between the two countries rose to US 6.8 billion dollars and the two were vying it to reach 15 billion US dollars by 2011.

“This will be difficult to achieve unless we take steps to further facilitate trade between the two countries,” the President said and added that can only happen when necessary banking facilities are already there.

The President mentioned the several ongoing projects in Pakistan like the KKH upgradation, Neelum Jhelum hydel project, and others that have been awarded to Chinese construction companies.

He said the Gwadar Port and Coastal highway have been constructed with Chinese support and several investment companies are now operating in Pakistan.

President Musharraf pointed at the growing demand for electricity in Pakistan and said the two countries that are already working together in nuclear and hydel sectors can expand cooperation in alternative sources of energy.

Apart from these, he said Pakistan offers opportunities in communications, Information Technology and many other areas.

He said increased trade will create jobs, generate economic activity and bring prosperity to the people of both the countries.

He mentioned the opportunities available in the Pakistani market for Chinese entrepreneurs. He said Pakistan’s population of 160 million was good enough for lucrative business. He said the economy was in upsurge with a seven percent average growth, while the GDP and per capita income have also doubled.

The President mentioned Pakistan’s strategic location that provided an efficient route between various regions and to the rest of the world. He said the Xinjiang province could vastly benefit from its proximity to Pakistan.

He said the two countries have already embarked on a plan to upgrade the Karakoram Highway, that already is a symbol of friendship between the two counties, for allowing all types of heavy traffic. This would have an additional linkage through a rail link that can connect Pakistan Railways with China Rail.

“We can even have fiber optic link and oil and gas pipeline along the same route that will further bring the two countries closer,” the President said.

“Tremendous opportunities will accrue leading to tremendous benefits for the entire region,” President Musharraf said.

The President said the communication links can also provide easy access to the Gwadar port.

President Musharraf dwelt at length about the business opportunities available in Pakistan and how the two business communities can benefit from the various incentives available for the foreign investors.

He said Pakistan provides conducive business environment through several rules and regulations already put in place.

The President recalled his talks with President Hu Jintao and Premier Wen Jiabao and how these will help in further strengthening the close relationship the two countries enjoy.

Governor of the Xinjiang Nur Bakari and Vice Governor Masood Qureshi and members of Pakistani delegation attended the function.

Pakistan’s ambassador to China Salman Bashir said it was President’s first visit to this part of the country and reflects the significance Pakistan attaches to having closer ties with a region that borders it.

He said the two countries enjoy strong ties that will continue to grow over the years.