ISLAMABAD, Nov 8: China will provide a credit line of $500 million to Pakistan on soft-term basis, which will be utilized for the projects to be undertaken with the assistance of Chinese companies.

Finance Minister Shaukat Aziz flanked with Privatization Minister Dr Hafeez Sheikh said in a joint press conference here on Saturday. The two minister returned from a week long visit to China and South Korea.

Mr Shaukat said that this preferential credit limit was a good achievement, besides singing of Preferential Trade Arrangement (PTA) with China. He told reporters the president of Exim Bank of China would visit Pakistan next month to work out a legal framework for utilization of this credit line in generating economic activities through joint ventures.

He said Pakistan-China Joint Economic Committee would meet early next year to explore new approaches and channels for mutually beneficial economic and trade cooperation.

The minister said that during the visit to China, altogether 28 agreements were signed, eight in public level and 20 by the private sector. He added the two sides also decided to strengthen the role of Pakistan-China Business Council.

Mr Shaukat said the two sides also agreed to improve laws and regulations, standardized enterprise behaviour and create favourable conditions for trade and investment activities of their companies and enterprises.

The finance minister said under the PTA agreement, Pakistan would get tariff concession on 893 items for its export to China. Whereas, this concession will be available on 200 items to be exported by China.

He hoped that Pakistani goods would be available in the Chinese market on competitive prices as a result of this agreement. The PTA will pave the way for establishing a free trade agreement at later stage.

Mr Shaukat said during the visit the two sides made substantial progress for undertaking Thar coal project as early as possible. He said about 100-member team of engineers will visit Pakistan by the end of this year to start hydrological survey to determine the availability of water at the sight. It would follow feasibility study to finalize financial matters. The two sides had already completed geological survey.

About the visit to South Korea the finance minister said: “Both sides held talks in an excellent atmosphere on a wide spectrum of bilateral, regional and global issues and affirmed the desire to expand bilateral economic cooperation in both private and public sectors.

Mr Shaukat said the Korean President advised the private sector to avail the investment opportunities in Pakistan. The Korean president also pledged to direct public sector to take greater interest in Pakistan.

The minister said Pakistan and South Korea signed three arrangements and a cooperation agreement, providing for bilateral cooperation in the field of information technology, oil, gas and mineral sector, and one relating to Korean EDCF, export and commercial credit facilities.

He said the two countries had decided to establish the Pakistan-Korea joint working group on energy and mineral cooperation. The working group will undertake joint feasibility studies for cooperation in energy and mineral resources fields.

Korea EXIM Bank and Pakistan signed a cooperation agreement which was earlier not functioning. The agreement provides Korean assurance for its EDCF, export, commercial credit and relenting facilities for development and commercial projects in Pakistan.

Privatization Minister Dr Hafeez Sheikh said that 12 MoUs, two letters of intent and six joint venture agreements were signed by the private sectors of Pakistan and China. It indicated total investment of $220 million. He said seven agreements were in the vehicle sector, five in motorcycle, one in wheels, three in textile, one in float cloth, which is the major activity of $36 million, one in pharmaceutical, one in paper and one in water and cans.—APP