ISLAMABAD (April 28 2006): Pakistan and China on Thursday signed an umbrella memorandum of understanding (MoU), which said Islamabad will facilitate Beijing as energy corridor to help in streamlining its petroleum products import.

The MoU will provide a framework to both the sides to lay down a pipeline from Gwadar to Chinese border to supply crude oil from Saudi Arabia. Islamabad and Beijing had been working on a project to construct a coastal highway to establish a road link from Gwadar Port to the Chinese border to facilitate exports through land route.

Planning Commission Deputy Chairman Dr Akram Shaikh and visiting Chinese Minister for Federation of Industry and Commerce, Hu Deping, signed the MoU on behalf of their respective governments.

President General, Pervez Musharraf witnessed the signing ceremony held at the Presidency. Under the MoU, Islamabad will offer special incentives to the Chinese investors to allure them for more investment in key areas such as oil and gas, power and other export-oriented projects.

It said that Pakistan would set up special industrial zones in different parts of the country along with highways, coastal areas where Chinese investors will be provided all the basic facilities for setting up their industrial units or joint ventures with the Pakistani investors for mega projects.

After the signing ceremony, Dr Akram Shaikh while talking to Business Recorder said that the MoU was a significant development that would help Pakistan in facilitating China as energy corridor.

He said Pakistan and China were entering into a new regime to help each other grow in today's challenging world.

He added that the Chinese investors would identify areas in Pakistan for setting up new industrial units.

He said an understanding has been reached that China would help Pakistan in exploring its potential in different areas and increase exports by producing surplus stuff.

The visiting Chinese energy delegation also met President Musharraf and expressed their willingness to invest in Pakistan's oil and gas sector.

The representatives of local oil and gas sector companies were also invited for the meeting.

The president informed the delegation that the Government of Pakistan would provide them all-out support and facilities to carry out their business and industrial activities in a cordial atmosphere.

He said the government and the people of Pakistan have great respect for their Chinese brethren and they want Pak-China co-operation to grow further.

Copyright Business Recorder, 2006