ISLAMABAD (Pakistan Observer)-The Chinese Ambassador to Pakistan, Mr. Luo Zhaohui says Pakistan and his country enjoy most cordial bilateral bilateral relations not only at government level but also people to people. He observed that excellent political and cultural relations hold immense possibilities of collaboration in the economic fields.

He was expressing his views during an exclusive interview with Pakistan Observer at the Chinese Embassy here Friday. "Bilateral cooperation between the two countries in various economic areas has been expanding over all these years," he said, adding that the two countries can take pride in completion of several projects including the Karakoram Highway and Gwader deep sea port on the Makran coast. The two countries are currently-engaged in upgrading of the Karakoram Highway to a high international standard. After the upgradation, the highway will play still more important role in boosting land trade and providing to Pakistan much desired access to Central Asia through China.

He expressed the hope that the Northern Areas of Pakistan and vast Western region of China would make rapid progress through collaborative economic strategy of the two countries. He saw vast possibilities of bilateral cooperation in the field of tourism with focus on adjoining regions of the two countries.

To a question the Ambassador said Pakistan-China trade volume rose to $5 billion mark for the first nine months of the current year. "But the scope is much larger in view of deep rooted friendship between the two countries. The two countries need to explore ways to boost volume of bilateral trade." He said, the Free Trade Agreement between China and Pakistan was a milestone in that direction. "A part from trade there is also great opportunities for joint industrial ventures and investment in several areas," he said, adding that Chinese companies were keen to invest in Pakistan and several of them have already made a mark in the economic progress of this country in the fields of IT and electronics. Chinese direct investment in Pakistan touched $1 billion mark over the first 9 months of the year 2007.

The Ambassador said, in the special industrial zone in Lahore several Chinese companies have set up plants while many others are on their way. This is the first of the eight such zones, China has envisioned to be created in countries in the neighborhood of China.

Mr. Luo Zhaohui said China fully recognizes Pakistan's pivotal role in promoting peace and security in the region. "China would always support and augment Pakistan's endeavors directed at maintaining its stability and security. A stable and secure Pakistan is a great source of strength for regional and international peace." He said Pakistan and China are working together in the Shanghai Cooperation Organization and SAARC for the cause of peace and development.

The Chinese Ambassador underlined the need to promote bilateral collaboration at people's level. He said China is establishing a university in Islamabad which will start functioning next year. "There is also need for media of the two countries to promote understanding between peoples of the two countries," he emphasized. He suggested that there should be think tanks in the two countries focused on each other.