BEIJING, Nov 21: China has agreed to provide $25 million to Pakistan to develop its textile industry, said Commerce Minister Abdul Razak Dawood.

In an interview here on Wednesday, he said the two sides have taken a number of decisions to enhance their bilateral trade.

He expressed the hope that some new trade agreements among the businessmen of the two countries would come into force during the visit of President Pervez Musharraf to China next month.

He termed his meeting with Chinese Minister for Foreign Trade and Economic Cooperation Shi Guang Sheng held here on Tuesday as very productive. During the meeting, they observed that the two countries have been enjoying good political relations and deep-friendship over the years, but the pace of their economic cooperation was quite low.

However, they noted that after the visit of Chinese Premier Zhu Rongji to Pakistan, there was good progress in their trade ties. The two-side bilateral trade volume was $1.2 billion in 2000. This received a quantum jump in the following nine months and the trade volume raised to $990 million during the period from January to September 2001, registering 17 per cent increase.

The minister expressed the hope that the increase in the bilateral trade would be 22 per cent next year. At present the balance of payment is in favour of China. But, he added the Chinese friends have assured that equity would be maintained in the bilateral trade.

Razak Dawood said since China was very rich in silk cloth, so it was decided that Pakistan would extend its cooperation for its re-processing, including embroidery and painting. China will export raw silk to Pakistan, enabling it to undertake its re-processing for onward export to Middle East and Africa.

It was decided that Chinese businessmen dealing ministry will soon pay a visit to Pakistan to study as how the two countries can cooperate for their mutual benefits.

Chinese investors will set up a “silk park” for display of its special cloth and its related development technology. For this purpose, Pakistan will allocate special land in its Industrial Estate Zone, probably in Karachi. Pakistan will extend its cooperation in garment making, using the Chinese silk, he added.

It was also agreed that China will enhance import of leather goods from Pakistan. At present Pakistan is exporting leather goods worth $10 million. Now it was decided to increase it to $150 million annually.

Pakistan, the minister said, had also offered China to set up its garment industry in Pakistan, for which a special land could also be earmarked in the Export Processing Zone.

The Chinese side expressed its desire to further increase the import of grey cloth from Pakistan. “We welcomed the offer, and it was decided that a purchase-mission will soon come to Pakistan for this purpose,” the minister added.—APP