5, April 2005	Tuesday	25 Safar 1426

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RAWALPINDI, April 4: Islamabad and Beijing have signed contracts for the construction of four F-22P frigates for the Pakistan Navy. The signing ceremony was held at the ministry of defence production here on Monday. A statement issued here by the ministry says Secretary Defence Production Ali Muhammad Jan Aurakzai led the Pakistani side and Mr Zhou Wushent, the director-general of the International Cooperation, Commission of Science and Technologies Industries (COSTIND), the Chinese side.

These ships will not only enhance the operational capabilities of the Pakistan Navy, but also help guard the sea boundaries of Pakistan, says the statement.

These F-22P frigates will be equipped with organic helicopters, specially designed for anti-submarine warfare, surface-to-surface-to-air missiles, and numerous associated self-defence systems

Other prominent Chinese guests, including Madam Lu Xiaoyan, the vice-president of the China State Shipping Corporation (CSSC) and Mr Sun Zhoughui, the director-general administration of the COSTIND, and other high military officials witnessed the signing ceremony.

Both sides signed the contracts for the construction of the frigates with all related equipment/systems with the special element of transfer of technology.

The director-general Munitions Production, Major-General Ghazanfar Ali Khan HI (M), signed the contracts from the Pakistani side while vice-presidents of M/s China Shipbuilding and Trading Company (CSTC), M/s China National Aero Technical Import and Export Corporation (CATIC), M/s China North Industries Corporation (NORINCO) and M/s China National Precision Machinery Import and Export Corporation (CPMIEC) separately signed the contracts from the Chinese side.

Our Staff Reporter adds: Pakistan and China would sign 19 trade and investment agreements worth $350 million during Chinese Prime Minister Wen Jiabao’s visit beginning on Tuesday, Privatization and Investment Minister Dr Abdul Hafeez Sheikh said here on Monday.

Speaking at a news conference here, the minister said the visit would also boost Chinese investment in Pakistan which currently stood at about $20 million.

China had become the third largest exporter and with an overall trade volume of more than $1 trillion this year it had started capital imports and at present it was developing border areas which would benefit Pakistan, Board of Investment (BOI) chairman Wasim Haqqui said.

Some of the agreements to be signed included $150 million for phase-II of the Chashma Nuclear Power Plant, $40 million for Lowari Top tunnel, $70-100 million for the deepening of Gwadar port from 11 metres to 14 metres, besides accords on the Neelum-Jhelum project and the Mangla Dam raising project, he said.

Dr Sheikh said the two-way trade at present stood at $2.5 billion which included $1.5 billion Chinese exports to Pakistan and $1 billion imports from here.

He also said China had expressed willingness to undertake expansion of Gwadar Port at a cost of $70 million during the current year. “Gwadar Port will be inaugurated this month after which China is likely to take up its expansion plan,” he added.

Responding to a question, the minister said the two sides would not sign any agreement for the second phase of Gwadar Port, but given the close bilateral relation, the two governments were always involved in such discussions.

He, however, clarified that an agreement for increasing the port’s capacity to handle heavy ships would be signed during the Chinese leader’s visit.

The minister said a 70-member delegation comprising businessmen was accompanying the Chinese prime minister to enhance trade and economic relations.

In reply to a question, he said Chinese investors had shown keen interest in Pakistan’s oil and gas sector, telecommunications, information technology, ports and shipping, infrastructure projects, housing, pharmaceutical, chemicals and engineering.

At present, Dr Sheikh said, 30 leading Chinese companies were operating in Pakistan and had shown interest in making additional investment.

A Chinese mobile company, he said, was taking interest in the privatization of the PTCL which would be disinvested by June this year. The China Mobile Company, he said, had 200 million subscribers and an annual revenue of $25 billion.

The Privatization Commission had received 18 Expressions of Interest for the disinvestment of the PTCL. He said that due diligence had been accorded to the process before the transaction was finalized by June 30.

Dr Sheikh said a decision had been made that the PTCL would be sold to a strategic buyer interested to have even 26 per cent shares. “With these 26 per cent shares, the PTCL management will be transferred to the new buyer,” he added.