ISLAMABAD, Feb 25: Pakistan and China on Friday agreed to finalize the list of items for Early Harvest Programme (EHP)-zero rate of duty-to be considered under the existing preferential trade arrangement (PTA) between the two countries.

The understanding was reached in a meeting of Assistant Commerce Minister of China Yi Xiaozhun who was leading a 16-member delegation with Federal Minister for Commerce Humayun Akhtar Khan.

Pakistan's commerce minister expressed his hope that on the eve of Chinese Prime Minister's visit to Islamabad in April 2005, the technical talks on EHP would have been finalized.

Both sides also agreed that the EHP would be the foundation stone towards conclusion of the Free Trade Agreement (FTA) between the two countries and would lead to more investment and trade.

The objective of the visiting Chinese delegation was to participate in the first meeting of Pakistan-China Joint Study Group (JSG) on FTA between the two countries. The EHP would cover items at zero tariffs that were mutually agreed under the existing PTA. Other items in the existing and extended PTA would also be added to the EHP.

Mr Khan also briefed the delegation on the trade and economic scenario of Pakistan and the opportunities of investment that Pakistan offered for the investment. The Chinese minister said: "We want to take Pakistan along with us as we develop and grow on economic and trade fronts."

Responding to this, Pakistan's commerce minister identified some areas of mutual cooperation, where Chinese companies could invest or opt for joint ventures with Pakistani companies.

He said that agriculture, food processing, livestock, fisheries, dairy farming, housing, IT, telecom, construction & engineering and packaging were some of the areas having great potential for Chinese investment. He also invited investment in export-oriented industries especially in manufacturing of fabrics and garments.