ISLAMABAD, July 21: Pak-China Joint Investment Company (PCJIC) was established here on Saturday with a paid-up capital of $200 million which would come into operation from next month.

The Memorandum and Articles of Association to this effect was signed here by Managing Director/Vice-Chairman PCJIC Chen Jianbo, Director PCJIC Xia Qiang and Secretary Economic Affairs Division M. Akram Malik and Senior Joint Secretary (Investment) Iqbal Hussain on behalf of their respective sides.

Adviser to Prime Minister on Finance Dr Salman Shah and Secretary Finance Ahmed Waqar were present on the occasion.

The company would promote economic cooperation between the corporate sectors of the two countries. The paid-up capital can be subscribed equally by the two parties to promote investment, launch joint ventures, project financing, asset management, housing financing, investment in banking and infrastructure projects.

Dr Salman Shah will be the chairman of PCJIC while M. Akram Malik has been nominated as director. The Chinese side has nominated Chen Jianbo, from China Development Bank as managing director and vice-chairman of the company while Xia Qiang as director.

The agreement says the PCJIC would perform investment banking business on commercial basis to carry out activities in the financial, infrastructure, services, mining, industrial manufacturing and non-manufacturing sectors.

It would enhance the existing bilateral economic cooperation between the two countries and attract foreign direct investment from other friendly countries, besides improving the investment climate in the country.

According to the agreement, the company’s headquarters would be established in Islamabad while its branch offices will be opened all across the country and abroad.

An official announcement of the finance ministry said that Dr Salman described the formation of the company as very encouraging adding that the joint venture would help further enhance mutual economic cooperation.

He said that China had been playing role of a catalyst and the Special Economic Zone established in Lahore was vivid example of that. He said that Free Trade Agreement (FTA) had also been leading the two countries towards enhancement of cooperation.