Friendship 'translates into economic gains'

SHANGHAI: "Time-tested and evergreen" relations between China and Pakistan are "translating into economic gains," Pakistani President Pervez Musharraf said, referring to the ever-closer business links between the two nations.

He attributed the friendship between the two countries to mutual respect and understanding.

"We've achieved concrete results, excellent diplomatic and political understanding," said Musharraf on the sidelines of the Shanghai Co-operation Organization summit, which ended on Thursday.

He said the two countries have set up an "early harvest" programme, which offers preferential trade treatment to each other, before a free trade zone is formally established. Under the programme, for example, machinery products imported from China are tariff-free.

Trade volume between China and Pakistan reached US$4.26 billion in 2005, up 39 per cent year-on-year, according to the Ministry of Commerce.

"We are looking for an FTA (free trade agreement) which would further boost trade," said Musharraf.

Aside from trade, Pakistan also seeks Chinese investment.

"We are looking for investment from China, especially in engineering and high technology. We're also identifying areas for investment in energy sector and infrastructure development," he said.

Oil refineries are another area for co-operation, he said.

He said the Gwadar port in Pakistan's coastal province of Balochistan has been developed with assistance from China, which has invested about US$200 million in the construction of the Arabian Sea port.

Musharraf said the next step is to improve the road and railway linkage between the port seen as a trade and energy corridor to China and Northwest China's Xinjiang Uygur Autonomous Region.

"The Gwadar port will be a transit hub between China and South Asia, the Middle East, Africa and Europe," he said.

On the fight against terrorism, he said that peace could only be achieved by tackling political disputes at the root of the conflict.

"One should not have the misperception that elimination of these (terrorist) leaders will bring an end to terrorism," he said, referring to the killing of Al Qaida leader Abu Musab al-Zarqawi by US forces in Iraq last week.

"The terrorists killed are like leaves on the trees, and Al Qaida may be one branch. The issue is to get to the root of the tree," he said.

"So we need to work for the resolution of political disputes."

He said Pakistan is determined to fight terrorism and extremism.

"In our region the two terror leaders, Osama Bin Laden and Mullar Omar, the Taliban head, are still alive. They are hiding somewhere," he said.

Source: China Daily