BEIJING, April 5: Pakistan and China will hold a high-level forum in Islamabad this month to work out a comprehensive plan of cooperation in the energy sector. A proposal of preparing a joint action plan in energy sector was agreed upon by President Pervez Musharraf and his Chinese counterpart Hu Jintao when they met in Beijing last February.

An official of the China’s National Development and Reform Commission told APP that his country was prepared to work with Pakistan to develop energy resources — including nuclear, hydro and thermal power — and to lay transmission lines.

The two sides have decided to set up a joint working group to suggest and implement proposals in energy sector.

The Chinese leadership has assured that they will encourage the relevant companies to interact with Pakistan, promoting mutually beneficial cooperative partnership in energy sector.

In a joint statement issued at the end of the president’s visit, both sides expressed satisfaction with the performance of Chashma Nuclear Power Plant-I and the start of the construction of the Chashma power plant-II.

During the visit, the president urged the Chinese side to consider Pakistan’s role as an energy and trade corridor between China and the Middle East.

In an interview with a leading Chinese magazine “Beijing Review”, President Musharraf underlined his country’s geographic advantage, which is important to China. He said: ‘Located between South Asia, China and Central Asian Republics, Pakistan is a country that cannot be ignored by anyone who wants to interact between these regions.

“As a large economy with rapid economic growth, China imports oil from Saudi Arabia and transports it through a long route around its east coast. China also trades with Europe, Africa, the Middle East and India. But now China can route through Pakistan.

“Because of our friendship with China and Central Asian republics, we would like to provide a shortcut route and contribute to all kinds of trade and energy cooperation.”

According to the magazine’s report, Gwadar port is capable of serving as China’s important energy transfer station. Oil from Africa and Middle East will reach the port and go on to China via road, rail or pipelines.

This is China’s new energy channel, said Pan Zhiping, Director of the Central Asian Studies Institute of the Xinjiang Academy of Social Sciences.

He said tat Pakistan’s proposed role as China’s energy corridor was a positive and inspiring proposition, which was worth active and serious consideration and assessment.

According to him, China’s efforts at multiplying its sources of strategic energy have encountered more barriers than expected. Against this backdrop, the prospect of establishing a trade and energy corridor through Pakistan appears all the more important. An oil pipeline through Pakistan will provide China another option other than the Strait of Malacca.

According to a report submitted by the Xinjiang delegation to the annual session of the 10th National People’s Congress in March, the energy transportation channel via Pakistan is 20,000 kilometres shorter than the route via the Cape of Good Hope, with transportation fees reduction by 25 per cent and transportation time cut by over one month. “This will greatly improve China’s capacity of energy import and ensure its energy security,” said Mr Zhiping.—APP