China and Pakistan will create a Pakistan-China joint investment company in July, according to a joint statement issued on April 21. Working links will also be established between the China Investment Promotion Agency and the Pakistan Board of Investment, the statement said.

Pakistani Prime Minister Shaukat Aziz began an official visit to China on April 16. A China-Pakistan joint statement was issued on April 20, setting out prospects for bilateral cooperation. The statement said China will support Chinese firms that invest in Pakistan, particularly in the auto sector, chemicals, fertilisers, light industry, textile, home appliances and machinery.

The two sides agreed to encourage their financial and banking institutions to establish cooperative links, and speed up negotiations on trade in services. The free trade agreement (FTA) between China and Pakistan on goods will become operational on July 1, 2007.