ISLAMABAD, May 15: Pakistan and China have signed an agreement for launching the Islamabad-Kashgar bus service from August 1, 2007 while the free-trade agreement between the two countries will be implemented from July 1, 2007.

The agreement was signed by Additional Secretary Communications Mohammad Abbas and the provincial minister of Sinkiang province from China.

It may be mentioned here that the Gilgit-Kashgar bus service was launched between the two countries last year and is being run successfully.

Arrangements for launching the new bus service will be finalised in a meeting in Islamabad next month.

China has also presented a proposal for launching a Urmachi-Islamabad bus service, which will also be discussed in next month’s meeting.

Pakistan explained details regarding the strategic economic corridor and it was decided that a goods transport agreement would be implemented from July 1, 2007.

Pakistan also proposed that the economic corridor should be extended to Urmachi. The delegation from China ensured that the Karakoram Highway would be upgraded by 2010.

Both the sides agreed to increase the number of permits for goods trade between the two countries.—APP