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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
767 items. With roughly ten thousand Chinese workers engaged in 120 projects in
Pakistan, total Chinese investment--which includes heavy engineering, power generation,
mining, and telecommunications--was valued at $4 billion in 2007 (Afridi, 2010). Both
countries have signed seven agreements in bilateral trade, energy sector and the
communication during the state visit of Pakistani Prime Minister Shukar Aziz in 2007,
Pakistan announced a free market economy status for China. Chinese government agreed
to provide a preferential credit of $ 500 million for investment in Pakistan through
Chinese companies. A significant part of it i.e. $ 150 million was to be spent on Chasma
nuclear power plant (phase two). The establishment of Sino-Pak (Free Trade Agreement)
was considered to be significant in terms of security and strengthening of the relationship
between both trading partners. It was decided in the meeting held in Beijing on 6 th
February 2005, that the China would also support Pakistan to join the Asia Pacific Trade
Agreement. One of the major China oil company has signed an exploration contract with
the Pakistan government. It plans to invest in drilling three wells on the Basca and
Bahawapul blocks (Xinhua Financial Network, 2007) . . In the first visit of President
Zardari after assume office in 2008, hold talks with his Chinese counter parts and after
that both witnessed the signing of ‗eleven agreements ranging from agriculture, mining
and environmental protection to space technology‘(Yang, 2008). The key agreements
were; Agreement on economic and technical cooperation; Amending protocol to Free
Trade Agreement; Framework agreement to set up $300 million National Electronics
Complex in Pakistan; Framework agreement on mineral cooperation; MoU on
cooperation in petroleum and natural resources; Agreement on environmental protection;
Framework agreement for cooperation in the field of radio and television; Paksat-IR
Satellite procurement contract; MoU on scientific collaboration in agricultural research
and technical cooperation, and MoU on cooperation between China‘s Cricket Association
and the Pakistan Cricket Board (The Dawn, 2008). In another trip to Shanghai and Hubei
province of China visited various sites. Large scale construction and Shanghai‘s urban
development were the areas of his interest. The purpose of this visit to China was to study
the ‗Chinese model of power generation‘. He also wanted to study the developments in
agriculture sector of China and identified the new areas of cooperation between the two
countries in hybrid seed, agriculture technology, water management, efficient irrigation
and water pumping through the use of solar technology.
Since Pakistan is facing a serious electricity crisis of 4500 MW expected to
continue the near future. Through signing the agreement in Hydel power generation
system, Pakistan hopes to benefit the expertise of China which has developed in this field
with an installed capacity of 171.52 GW. China has over 50 percent of the world‘s small
Hydro units. The mutual cooperation in Hydel power generation would help Pakistan in
dealing with the power crisis in country. The level of cooperation was extended by
signing agreements on provincial level of cooperation in number of field like agriculture
between the Government of Sindh, Province of Pakistan and Government of Hubei
province of China for the development of a new high yield rice hybrid seed and
germplasm technology transfer to protect that seed. Banking, finance, construction and
management of Gwadar port were other sectors in which MOUs and agreement were
signed.
President Zardari declaring himself the first businessmen President of Paksitan
directly interacted with the Chinese business community. He met with number
COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 160
JANUARY 2011
VOL 2, NO 9