KARACHI, Sept 15: Pakistan was in the process of negotiating a $750 million preferential loan from China for procurement and construction of four P-22 frigates for the Pakistan Navy.

This was stated by Chief of the Naval Staff Admiral Shahid Karimullah in a news conference on the sidelines of the Ideas 2004 here on Wednesday. He said other aspects of the negotiations with China for the project were complete and only the availability of loan was delaying the commissioning of the project.

If the funding aspect was resolved then it would take at least four years to induct the first of the four frigates. The span of the project was estimated to be spread over 13 years when the fourth frigate would be delivered, he said.

Besides the construction of frigates with Chinese collaboration the navy was also moving ahead with defence production, with special emphasis on naval subsurface and surface construction programme.

He told a questioner that the package negotiated with China for the four frigates included helicopters for anti-submarine role. For the time being, he said, the fleet of Sea King helicopters was enough to take care of the navy's needs for the next 10 years.

In the context of improving navy's aerial surveillance capability, Admiral Shahid told a questioner that the US authorities had agreed to assist in the repair of the existing Orion patrol aircraft.

He emphasised that Pakistan would also like to have more P3C that would help in replacing the aging fleet of French Atlantiqe reconnaissance aircraft. Referring to indigenization, he said the navy had over the years acquired capabilities of constructing submarines and missile craft by utilizing indigenous resources not only to meet its own requirements but to pen these platforms to sell in international market.

The navy chief said that delegations from the UAE, Qatar and Nigeria had expressed interest in the fast patrol missile boat landed a few days ago and there was a lot of potential for their export.

He also spoke of the 'colossal disparity' in every field with the Indian navy which had no dearth of supply from Russia. For Pakistan, he said, effects of sanctions, as far as Europe was concerned, were still being felt.

He did not agree with a questioner that there was substantial deployment of the Indian navy in the Gulf and said they were on goodwill visit. The navy chief said talks were continuing between Pakistan and India over the Sir Creek issue.

"Our stand is for solving it under the agreement between the then Sindh government and the Bombay government, but the Indian stand is different. However, talks continue on this issue."

He emphasized that lasting peace in the region could be achieved only by solving the Kashmir issue. Asked whether the navy was planning to acquire an aircraft carrier, Admiral Shahid said that at the moment "we want to maintain minimum nuclear deterrence.

At the moment we want more surface ships, submarines and aircraft. The government has decided to maintain minimum deterrence in conventional and non- conventional fields."

He also spelt out Pakistan Navy's role in combating international terrorism and said that a ship and a helicopter were participating in patrolling the sea beyond the territorial waters against terrorism, smuggling of human beings and narcotics for past six months.