Pakistan and China signed an agreement on Friday to develop a new satellite, PAKSAT-1R, in about three years period, Pakistan's Economic Affairs Division ( EAD) said in a press release.

According to the framework agreement signed by EAD Secretary Farrakh Qayyum and Chinese Ambassador to Pakistan Luo Zhaohui, China will fund the satellite project with a soft loan of 1.35 billion RMB (about 200 million U.S. dollars) carrying maturity period of 20 years.

The communication satellite will have 30 years transponders, 12 in C-Band and 18 in Ku-Band, each of 36 MHz Bandwidth. The program is in line with Pakistan's Medium Term Development Framework (MTDF 2005-10) objectives and may provide better satellite communications for Pakistan, said the press release.

Pakistan Space and Upper Atmospheric Research Commission ( SUPARCO) and China Great Wall Industry Corporation (CGWIC) will jointly develop the new satellite to replace the Pakistan Space Craft, which is likely to expire in 2011.

(Xinhua News Agency September 18, 2009)