PM’s visit to China: Pakistan-China relations to be further strengthened
By Zafar Bhutta
http://www.dailytimes.com.pk/default.asp?p...27-1-2008_pg5_2
ISLAMABAD: Pakistan and China are set to ink three important agreements for promotion of investment, trade, road and rail links during the forth coming visit of the caretaker Prime Minister to China expected in current week, official sources told Daily Times on Saturday.
First agreement relates to laying railway line from Gwadar port oil city to China. Other is to double Karakuram Highway for enhancing land link of Gwadar Port with China to attract the Chinese investment in Gwadar oil city by providing better communication link.
Third and most important is Chinese lending programme based on soft loans for mega projects being carried out by Chinese companies in Pakistan. Sources said that the laying of railway line track is a part of trade, energy, transport and industrial corridor programme between two countries. Sources said that the corridor would require a set of important measures to make this initiative a success. The laying of railway line track and double Karakuram highway is one of those important measures required.
They also said that many companies are working in the areas of energy, water and power sectors and therefore China wants to provide soft loan for all the mega projects in these sectors. Sources also said that by double road of Karakuram Highway and laying railway line track between the two countries would help China to open doors for the access to central Asian states through Gwadar port.
Sources further informed during the forthcoming visit of caretaker prime minister Mohammedmian Soomro to China, two sides may also move ahead on signing agreements on Chinese investment in Gwadar Oil City, incentives for setting up of special economic Zones(SEZ) and Gawader seaport development programme.
Two sides also may sign Memorandum of Understanding (MOU) on cooperation in energy sector and Chinese petroleum ministry had earlier indicated shifting of energy related industry and it access capacity to the port. Chinese ministry has estimated that this zone can attract Chinese investment of around $ 13 billion.
Balochistan government has been asked to identify state land for development of projects at Gwadar out of which 50 square kilometers land would be allocated to Chinese developers for setting up SEZ. China-Saudi Oil refinery would be set up in proposed oil city at Gwadar.
