Pakistan wants to see a more active role played by Chinese businesses in the South Asian country and is considering setting up a Chinese investment zone to stimulate investment from China, said visiting Pakistani President Pervez Musharraf yesterday.

"I firmly believe that private relations between Pakistan and China will be elevated," said the Pakistani president at a Pakistan-China Business Forum in Beijing yesterday, after saying that there are no countries in the world enjoying better relations than Pakistan and China.

He said the amount of Chinese investment in his country was only about US$3 million this year, which was very small considering the potentials of the world's sixth most populous market and China's economic strength.

President Musharraf added that Pakistan was studying the possibility of setting up a Chinese investment zone, where Chinese businesses would enjoy good investment services and preferential policies.

He told an audience of 500 people from business communities of both nations that while up to now governmental relations have dominated bilateral ties, it is time for business relations to catch up.

The Pakistani president welcome Chinese companies to come to Gwader port, which the Chinese Government provided US$480 million in loans to build, and which will become a free trade zone in the South Asian country.

President Musharraf also encouraged Chinese energy companies to seek more development opportunities in his nation.

Although most of the investments in Pakistan's oil sector are from Western countries, Musharraf said he hoped to see more involvement of Chinese companies.

The rich resources of cotton and the development of the textile industry in Pakistan also offer more opportunities for co-operation between the two countries, he believed.

Yesterday, Chinese companies signed investment agreements worth more than US$80 million in proposed projects in Pakistan.

Chinese automobile giants including the First Automotive Works, Dongfeng Motor Corp and Beijing Jeep will invest about US$30 million in manufacturing or technology transfers.

Two private motorbike enterprises, the Zongshen Group and Lifan Group from Chongqing Municipality, also plan to set up joint ventures in Pakistan.

An Min, vice-minister of commerce of China, also called for the deepening of bilateral trade and economic co-operation.

He said China promised on Monday to offer US$500 million in preferential buyer's credit to help Pakistan businesses export to China.

Bilateral trade stood at US$1.64 billion for the first nine months, a rise of 24 per cent year-on-year, auguring a record for the year higher than last year's US$1.8 billion.

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