BEIJING, Oct 17: Pakistan has decided to provide $100,000 as compensation to the family of Wang Peng, the Chinese engineer who had lost his life during the hostage-taking episode.

It has also been decided to give $50,000 to Wang Ende, the other Chinese hostage who was rescued during the military operation.

Syed Makhdoom Khusro Bakhtiar, Minister of State for Foreign Affairs, said this in an interview with APP here on Sunday.

He said: "We are deeply saddened by the death of the young engineer. Nothing can serve as compensation, but this financial help is being given to comfort the affected families in their hour of grief."

The minister, who arrived here on Saturday accompanying the body of Wang Peng, said he conveyed to the affected families the shock felt by the Pakistani nation on the death of their kinsmen. "We felt sorry that despite all our efforts, we could not save the precious life," he added.

He said it was evident that the mastermind behind the terrorist act wanted to undermine the historic friendship between the two nations. But, he added, "our resolve has further been strengthened to deepen our bilateral cooperation to combat terrorism in all its forms and manifestations."

President Pervez Musharraf and Prime Minister Shaukat Aziz have assured that they will give exemplary punishment to individuals involved in the heinous act, he said.

Mr Bakhtiar said the government of Pakistan had shared information with the agencies concerned of the Chinese government before mounting the rescue operation.

About steps to avoid a repeat of such incidents in the future, the minister said a series of meetings had been held in the country at the highest level to further upgrade and ensure safety of Chinese nationals working in Pakistan.

Replying to another question, he said the government and the people of Pakistan held in high esteem the level of cooperation between the two nations.

The Chinese help and assistance in development projects in Pakistan give a big boost to bilateral economic cooperation, he said.

Mr Bakhtiar said the kidnapping incident had further strengthened "our resolve" to pursue with even greater vigour "our campaign against terrorism".

China has expressed its resolve to further strengthen the bilateral ties. While receiving the body of Wang Peng, the vice-governor of Shandong Province, Xie Yutang, expressed shock and sorrow over the tragedy, but noted that the Pakistan government had done its utmost to rescue the hostages.

"China and Pakistan are very good neighbours. We believe the two would continuously strive for further developing their cooperation," he added.

He expressed gratitude to Minister of State for Foreign Affairs Makhdoom Khusro Bakhtiar for accompanying the coffin.-APP