ISLAMABAD, June 26: Pakistan and China on Thursday signed a Rs198 million agreement for supply, installation, testing and commissioning of an international gateway exchange and satellite earth station to the Special Communication Organization (SCO).

SCO Director General Maj-Gen Mohammad Waheed Akhtar Malik and Zhongxing Telecom (ZTE) Vice-Chairman Javed Sadiq signed the agreement. Chinese ambassador Zhang Chonxiang and PTA Chairman Shahzada Alam Malik were also present.

Speaking on the occasion, Information Technology Minister Awais Ahmad Khan Leghari called for an enhanced cooperation between the two countries in the field of telecommunications, saying Pakistan could benefit a great deal from the expertise and skills of Chinese telecom firms.

“We value the help and cooperation China has been extending to Pakistan in the fields of telecommunication,” the minister said.

He said the government was committed to facilitate and extend incentives to investors in the manufacturing sector. He said the government’s vision was to make the SCO financially independent and a viable entity.

The SCO chief said the project would be completed at a cost of Rs198.41 million and would generate Rs300 million revenue in the first year after its commissioning, which would rise to Rs500 million in the third year.

After completion, the SCO would also be able to meet the growing demand of international traffic. The SCO will also be able to hire out bandwidth to other operators under the deregulated atmosphere.