He said this programme includes collaboration on an Institute of Textile and Clothing. He said Pakistan welcomes Chinese producers setting up factories in Pakistan.

"Pakistan has one of the most liberal investment regimes. Pakistan's investment environment is especially hospitable for Chinese entrepreneurs. Chinese corporate sector has worked in Pakistan for several decades with success," he noted.

Ambassador Khan said that most of the Chinese companies are familiar with Pakistan's manufacturing landscape.

China has excess capital and expertise in textiles industry. The textile industries' competencies can be easily transferred to Pakistan. In fact, the best option would be to start exclusive textile zones which could be managed by the Chinese enterprises. "We could also experiment with joint ventures. An interface of sorts already exists," he said.

Copyright APP (Associated Press of Pakistan), 2011