Pakistan and China are looking at setting up a free trade area
between the two countries, Pakistani Foreign Minister Khurshid
Kasuri said in Beijing late on Thursday.
"We talked (with Chinese leaders) about the possibilities of
establishing a free trade area between Pakistan and China," Kasuri
told China Daily in an interview.
"Pakistan welcomes more investment from China, especially from
the private sector, as China is now not only a large investment
receiver, but a large investor," said Kasuri, who was on a
three-day visit to China that ended on Friday.
"We talked about the specific projects which will be built with
the US$500 million loan China gave to Pakistan last year," said
Kasuri, adding: "These mainly will involve infrastructure
projects."
China offered a preferential loan of US$500 million to Pakistan
for bilateral trade and economic co-operation during Pakistani
President Pervez Musharraf's visit to Beijing last November.
Kasuri denied that US Secretary of State Colin Powell's
announcement of Pakistan's status as a Major Non-NATO Ally during a
visit to the country last month would harm any of Pakistan's
existing relationships.
"This is a unilateral decision that we have welcomed. It is
neither a military alliance nor will it affect our relations with
any other country."
The US has also given this status to Israel, Egypt, Japan,
Australia, South Korea, Jordan, Argentina, New Zealand, Bahrain,
the Philippines and Thailand.
"The purpose of this decision by the US administration is to
facilitate the purchase of military equipment by Pakistan from the
United States, particularly to assist us in the fight against
terrorism," said Kasuri.
"Pakistan does not have any plans to hold joint military
exercises with the United States at the moment," Kasuri said. But
the minister did not rule out the possibility of this in the
future. Joint military exercises are just "normal exchanges"
between countries, he said.
But he reiterated that Pakistan will not allow any foreign
troops onto its soil.
Kasuri denied reports that some foreigners captured in a recent
major operation on the Pakistan-Afghanistan border were from
China's Xinjiang Uygur Autonomous Region. "We have not yet
established the identities of the foreigners... but they do not
appear to include any of Chinese origin," Kasuri said.
"Pakistan will never allow its territory to be used against
Chinese interests," he insisted.
Pakistan and China signed an extradition treaty last November,
which provides for extradition of wanted criminals.
Turning to the Pakistan-India peace process, which the two
countries agreed to restart in January, Kasuri said he "anticipated
increased trade and economic activities involving the two
countries."
Kasuri does not think the time is right for President Musharraf
to visit India in the near future. "He would be willing to go, as
he did in the past." he added.
"That depends on India. It depends on the progress of the peace
talks," he said. "A lot of work has to be done (to create the
atmosphere) for such a visit," he said.
During his visit, Kasuri held talks with his Chinese counterpart
Li Zhaoxing and met Premier Wen Jiabao. The talks focused on
economic co-operation between Pakistan and China, the rebuilding of
Afghanistan and fighting terrorism, he said. He also made a
stopover in Shanghai on Wednesday to discuss trade issues.
(China Daily April 10, 2004)