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China and Pakistan will create a Pakistan-China Joint Investment Company in July, according to a joint statement issued last Friday.

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 Monday. A China-Pakistan Joint Statement was issued last Friday, setting out prospects for bilateral cooperation.

The statement said China will support Chinese firms that invest in Pakistan, particularly in the auto sector, chemicals, fertilizers, 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.

It was agreed to establish an Electronic Data Interchange (EDI) system to facilitate the development of trade, according to the statement.

The two countries also agreed to cooperate more in the energy and minerals sectors.