China, Pakistan ink transport pact (2)

Sharif said before the visit that he would focus on economic topics during his trip, with the corridor topping the agenda. He told Chinese reporters the corridor will "change the fate" of the region.

"Now that the management of Gwadar (port operations) has been handed over to China, we expect that Gwadar is ready to become a very important economic hub and an important Arabian Sea port," he said.

China Overseas Holding Ltd took over operational control of Pakistan's important Gwadar deep-water port from Singapore's PSA International earlier this year. Gwadar is close to the Pakistan-Iran border and the Strait of Hormuz, through which much of the Gulf region's oil exports are bound by ship for overseas markets.

Sharif said the economic corridor will boost bilateral trade considerably and offer opportunities for businesses in both countries.

In talks with Sharif on Thursday, President Xi Jinping referred to his guest as "an old friend and a good brother". He said strengthening strategic cooperation with Islamabad is a priority for Beijing's foreign policy.

Wen Fude, vice-president of the Chinese Association for South Asian Studies, said the corridor will provide another strategic choice for China's transport sector.

It will also stimulate infrastructure construction in Pakistan, Wen said, adding that increased bilateral trade brought by the corridor will help Islamabad to cut its huge trade deficit with Beijing.

"Beijing is helping Pakistan to produce blood by itself, instead of donating blood through assistance," Wen said.

Another agreement signed on Friday covers the laying of a fiber optic cable from the Chinese border into Pakistan that will boost Pakistan's access to international communications networks.