ISLAMABAD, Feb 23: Pakistan and China on Friday inked a memorandum of understanding (MoU) allowing a joint venture company for handling of management and business of Sost Dry Port (SDP).

Chairman, Sinortans China Yuan Jianmin and Vice Chairman, Silk Route Dry Port Trust, Saleem Khan, signed the agreement.

Minister for Kashmir Affairs and Northern Areas, Maj (Retd) Tahir Iqbal was also present.

The joint venture company, "Pak China Sost Dry Port Pvt Ltd", will be registered in the Northern Areas for amicable handling of all affairs pertaining to business and management of Sost Dry Port.

The operation of the port will facilitate trade through land route.

In an official announcement, issued here after the meeting of the two sides, the minister categorically stated that from now on all the business done would be in the name of this joint company, the account management and administration of the SDP would be jointly controlled by Pakistani and Chinese side and a balance will be maintained in the number of officials from the two sides.

It was also decided that the 4th board meeting will be held on March 6, 2007, chaired by the minister, in which the actual new board would be formulated for three years, which will then not be changed unnecessarily.

The board members will be nominated or terminated according to the laid down procedures which will be similar for both sides.

The minister also decided that the loans taken separately by the Chinese Company and the "Silk Route Dry Port Trust" will not be the liability of the joint company and will be the own responsibility of these companies.

The company board will also have an ex-officio member from the NAs administration.

Mr Iqbal said Pakistan and China enjoyed time-tested exemplary cordial relations which will further be strengthened by the signing of this MOU as all the disputed issues have been resolved with mutual consensus.

He added that Sost Dry Port would serve as foundation for future investments and trade between the two countries.

The minister said that the president and the prime minister had expressed concern over the SDP issues and have asked the minister to get involved and resolve these at the earliest.

Chairman, Sinortans, China, reciprocated the minister’s sentiments and said they fully agree with the decisions reached during the meeting, and would provide 100 per cent support for future management of SDP.

He invited the minister to chair the next board meeting in China.