China has opened its first overseas joint economic zone in Pakistan in a bid to accelerate domestic enterprises' overseas investment.
The joint economic zone, covering 1.03 square kilometres at Manga Mandi, 40 kilometres south of Lahore, was established by China's leading home appliance maker Haier and Pakistani firm Ruba.
Haier has a 55 per cent stake in the joint venture, while Ruba holds the remaining share in what will be Pakistan's largest home appliance production base and the first Sino-Pakistani joint venture of its kind.
"China attaches great importance to economic relations with Pakistan. Investment in Pakistan benefits both nations," Chinese President Hu Jintao said after inaugurating the Haier-Ruba Economic Zone.
The two sides are expected to invest around US$250 million in the construction of the zone over the next five years.
The firms hope that a number of domestic electrical appliance firms, ranging from manufacturing to distribution, will be attracted to the zone. "This project symbolizes the widening and deepening of economic relations between China and Pakistan," Hu said.
The establishment of the economic zone is expected to further boost economic and technological co-operation between China and Pakistan, China's commerce ministry said in a statement.
