China : Pak Prez visit to China will consolidate trade relations

President Pervez Musharraf will be on a state visit to China from February 19. He is scheduled to address Pak-China Business Forum in Beijing on Feb 21, to promote economic relations and seek more Chinese investments in the country, said an official of the Pakistan embassy here on Tuesday. Pakistan embassy in collaboration with China's Enterprises Confederation and All China Federation of Industries and Commerce has arranged the forum. Chief Executives of some prominent Chinese companies are expected to meet the President to explore possibilities of future prospects and further the cause of greater economic cooperation. New joint ventures in textile, energy, communication and mineral sectors are also to be undertaken up by the forum, sources said. Permanent offices of about 60 companies have been established in Pakistan which reflects growing economic relations. Efforts to form a Pak-China Joint Investment Company for strategic projects are also under consideration. The bilateral trade volume has already reached $4.26 billion, showing steady growth in their economic relations in recent years. Trade turnover has jumped to $4.26 billion between January-December, in 2005, compared to $3.06 billion during the corresponding period of 2004, according to Chinese Customs Authority figures. Pakistan's exports to China went up to $832 million between January to December, 2005, compared to $594 million in the corresponding period the previous year, registering an increase of about 39.2 percent.

Number of steps have been taken by the two countries to increase trade during past three years, among them being the signing of Early Harvest Programme (EHP) which will increase trade volume to about $8 billion by 2008.

Free Trade Agreement (FTA) negotiations would strengthen bilateral trade relations, said Xu Changwen, a trade researcher at the Chinese Academy of International Trade and Economic Co-operation.

Pakistan’s stable economic growth will attract more Chinese investments, said Pakistan’s Ambassador to China Salman Bashir.

Commercial Counsellor at Pakistan embassy Shahid Mahmood advised Pakistani businessmen to focus on value-added textile products, cotton fabrics, manmade fabric, home textile and towels.

Chinese commerce ministry suggested that Pakistani businessmen can attract more business by establishing their offices in major cities of China as Shanghai, Guangzhou, Urumqi and Shenzen.

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