ISLAMABAD, March 23: China is expected to seek permission for its companies to compete with Russia in the expansion of Pakistan Steel Mills, Karachi, during Prime Minister Zafarullah Khan Jamali’s three-day visit that starts on Monday.

Official sources told Dawn that China had written to Pakistan that a consortium of two of its companies had been planning since long to invest in the expansion of PSM and was surprised to know that a Memorandum of Understanding had already been signed with Russia.

Sources in the industries ministry said that without any prejudice to the MOU signed with Russia Pakistan would welcome Chinese participation in the PSM’s expansion.

The $95 million MOU was signed when President General Pervez Musharraf visited Moscow a couple of months back.

Officials said the ministry of industries and the PSM authorities were still making plans for the PSM and would be more than interested to create as much competition as possible to expand the country’s largest industrial unit.

They said the MOU did not bind any party to carry out expansion of the PSM and would be subject to signing of a formal agreement which would be on the basis of cost effective and competitive terms and conditions.

APP adds: Mr Jamali will leave for Beijing on Monday on the invitation of the newly elected leadership of China.

Information Minister Sheikh Rashid Ahmed, Petroleum Minister Chaudhry Noraiz Shakoor and prime minister’s adviser on finance Shaukat Aziz will be accompanying the prime minister during the three-day visit.

At the Beijing airport, the prime minister will be received by the deputy foreign minister of China, Wang Yi, from where he will be driven to Diaoyutai State Guest House.

Later, they will leave for Great Hall where Chinese Prime Minister Wen Jiabao will receive Prime Minister Jamali at a ceremony to formally receive the prime minister.

Official talks would be held after the welcome reception.

Mr Jamali will meet the President of People’s Republic of China, Hu Jintao, Chairman of Standing Committee of the National People’s Congress, Wu Bangguo, and Chairman of central military commission, Jiang Zemin, during the visit.