Pakistan, China agrees to set up joint investment company

BEIJING, Mar 1 (APP): Pakistan and China will set up a joint investment company (JIC) this year, with an initial capital of about $ 500 million.

A formal decision to this effect was taken during the visit of President's Pervez Musharraf to Beijing last week. This will push forward China's participation in the economic development of Pakistan on a regular and long-term basis.

According to the official sources, the two sides will soon discuss and finalize legal and financial framework of the company that is to be set up in Pakistan.

Pakistan has already worked out similar arrangements with other countries for financing development projects. Such as Saudi-Pak Investment Company, Pak-Kuwait Investment Company, Pak-Libya Investment Company, Pak-Oman Investment Company.

According to the sources, President Musharraf during the visit held very productive talks with the Chinese leaders and the business executives to expand their economic, technological and investment cooperation.

Pakistan is one of China's key markets for contracted projects and the proposed JIC will be in line with the on-going efforts, consolidating their partnership in the fields of trade and investment, the sources added.