ISLAMABAD, Oct 6: Pakistan on Wednesday offered China its seaports for trade with Middle East countries.

This was announced at a press conference addressed jointly by Minister for Kashmir Affairs Faisal Saleh Hayat and Ismail Tiliwaldi, the visiting governor of the Xinjiang Uyger autonomous region of China, at the ministry of Kashmir Affairs here.

Mr Hayat said Pakistan could earn millions by becoming a transit country for China's trade. He said that businessmen of both countries could benefit from the Karachi port, the under-construction port at Gwadar and the Karakoram Highway.

Mr Hayat said the two countries had agreed to boost tourism and trade and utilize their natural resources in their respective northern areas. "Pakistan can benefit from the tourism industry of Xinjiang as 10 million foreign tourists visit this Chinese region every year," the minister said.

Mr Tiliwaldi said Pakistan and China shared common views on all international issues, specially on countering terrorism. He said the killing of a most wanted Chinese terrorist, Maqsoom, in Wana by Pakistani security agencies last year was highly appreciated by the government of China and its people.

Mr Tiliwaldi said his meeting with Pakistani minister and officials had assured him that the time-tested relations between the two countries would continue to grow further.

He said Pakistan was fully united under the leadership of President Gen Pervez Musharraf and making rapid progress. "We also take pride in your (Pakistan's) development," he added.

Accompanied by a strong business delegation on a three-day visit here, the Chinese governor met Prime Minister Shaukat Aziz and also held talks with the ministers of commerce, interior and Kashmir Affairs.

Mr Hayat said his meeting with the Chinese governor covered subjects ranging from politics to economics to cultural cooperation and there was a broad consensus on all vital issues.

The two sides agreed to set up a two-tier committee to increase economic and trade interaction between the Northern Areas and Xinjiang which, with an area of 1.66 million square kilometres, constitutes one-sixth of the total Chinese territory.

Xinjiang is rich in natural resources and offers great opportunities to Pakistani entrepreneurs to exploit trade potential of this land-locked region. Last year its crude oil production reached 21 million tonnes, making it the third largest oil producing Chinese province.

Having a strong cotton production-base, the province accounts for about 40 per cent of the total Chinese cotton output. Governor Tiliwaldi said the two-tier committee could play an important role in promoting trade and commercial cooperation between his province and the Northern Areas.

He identified tourism as one of the many areas that offered mutual benefit. Mr Hayat said a strong Pakistani business delegation will soon visit Xinjiang to explore opportunities of business and joint0 ventures with their Chinese counterpart.