BEIJING, Nov 2: China has agreed to provide special preferential tariff status to Pakistan to narrow the trade gap between the two countries.

An agreement to this effect will be signed on Monday, following President Gen Pervez Musharraf’s talks with his Chinese counterpart Hu Jintao, to be held at the Great Hall of the People.

“We hope the president’s visit will be highly successful in the development of the economic ties,” a Chinese official told APP.

The agreements to be signed during the visit are expected to include expansion of the Saindak project, a $500 million credit line for new joint venture projects, an extradition treaty and collaboration in power generation projects.

“We expect a substantial progress on the Thar coal project during the president’s talks with the Chinese leaders,” said a Pakistan embassy official.

China will provide the credit line of $500 million on soft-term basis and a negligible interest rate for utilization in projects to be undertaken with the assistance of Chinese companies.

According to sources, the two sides will sign a memorandum of understanding on the expansion of the production of the Saindak copper-gold project.

President Musharraf is scheduled to address a business conference on Tuesday. Nearly 400 Chinese and Pakistani businessmen are expected to attend the conference.

Sources said the conference would provide the opportunity for the signing of about a dozen agreements for joint ventures to enhance bilateral trade and Chinese investment in Pakistan.

Pakistan would propose the setting up of a special industrial zone for Chinese products, they said.—APP