KARACHI, Nov 22: The Chinese buying mission has signed one contract and import agreement worth $2.65 million with Pakistani counterparts for chrome ore, cotton linters, etc.

The agreement was signed at the head office of Federation of Pakistan Chambers of Commerce and Industry in the presence of former FPCCI chief Tariq Saeed.

The seven-member Chinese mission is here on a visit to improve trade between the two countries. The mission has further explored the possibility of importing new items from Pakistan.

On the occasion, leader of Chinese mission, Wang Qihui, said Chinese importers were willing to buy more items from Pakistan provided price and quality of goods were competitive, says a press release of the FPCCI.

Last year, China’s exports to Pakistan showed 21 per cent increase, whereas imports from Pakistan also rose by 19 per cent. More than 85 per cent of Pakistan’s exports to China constituted cotton yarn, cotton products, chemicals and leather items.

Exports to China increased to $304 million in the fiscal 2001-02 as against $180 million in the previous fiscal.

On China’s entry to WTO, he said: “Chinese markets are now more open than before and we want larger share by the Pakistani exporters in our market.”

Mr Wang said the Chinese government would encourage its corporations to establish joint ventures in Pakistan but the key factor was profitability. He said there was a lack of knowledge about Pakistani products in China and there should be more single country exhibitions in China, particularly for kinoo and mangoes.

Tariq Saeed said that Chinese side was more inclined towards using Pakistan as a supplier of textiles raw materials such as yarn and invited the Chinese investors to set up joint ventures with Pakistani counterparts. He said Pakistan was looking for long-term relations with China to improve its textile manufacturing and exports.

Chairman, Pakistan China Business Council (PCBC), Shaikh Jawed Ilyas, said the 12th session of Pak-China joint ministerial meeting would be held in March 2003 in Islamabad.

He said a proposal for establishing a dispute resolution committee was mutually agreed upon by the FPCCI and the Chinese trade body, which would be finalized in shape of signing of contract in Beijing soon.