BEIJING, April 13: Pakistan and China have made substantial progress in their talks to work out a transit trade agreement and expand the scope of a free trade agreement, besides identifying new areas of cooperation to strengthen their multi-faceted ties.

The talks, held between President Pervez Musharraf and the Chinese leaders, including President Hu Jintao and Prime Minister Wen Jiabao, have made a significant headway on a host of issues.

The president, who arrived in Beijing after attending the annual Boao Forum for Asia and holding talks with President Hu Jintao in Sanya, in Hainan island, met Prime Minister Wen Jiabao at the Prime Minister Office on Sunday.

The two leaders reaffirmed their resolve to further strengthen their ties in all spheres. President Musharraf said he was in China to see its progress and rapid development.

“We rejoice the success, achievements and progress of China that remains our time-tested and all-weather friend,” President Musharraf said.

Prime Minister Wen Jiabao said the visit of President Musharraf would further promote the friendly relations between the two countries. He said the two leaders had had several meetings over the past several years that signified excellent relations between them.

Foreign Minister Shah Mahmood Qureshi told APP that in several rounds of talks the two sides had also discussed the need for adopting ‘corrective mechanism’ to offset their trade imbalance.

He said the two countries had agreed on a five-year trade and economic development plan, and the projects falling in this category would get concessionary credit.

Both the countries also identified several new areas where they can extend cooperation through the already existing mechanism.

Pakistan and China signed a free trade pact in 2006 that covers goods and investments and are looking at ways to add the segment of trade and services besides raising the two-way trade to $15 billion much before the stipulated time.—APP