Special coverage: Hu Visits Pakistan Related readings:  Anti-US violence grips Pakistan  Briton home after 18 years in Pakistan jail  Briton granted clemency in Pakistan  Suicide bomber dies attacking Pakistan police  Pakistan tests Hatf-5 missile  President Hu's visit of "milestone importance"  Pakistan tests intermediate-range missile  Cricket-PCB doping appeals commission adjourned until Sunday  Rape law reform stirs up protest in Pakistan  China-Pakistan relations

Hu, describing Pakistan as "good neighbour, good friend and good brother", raised five-point proposal to advance bilateral relationship, including increasing official exchanges at all levels, expanding investment and pushing interactions in human sectors.

China has decided to set up the Haier-Ruba economic zone in the eastern Pakistan city of Lahore to boost economic and trade collaboration. Hu also invited 500 Pakistan youth to visit China in the next five years.

His proposals also include the enhanced partnership on fighting against terrorism and strengthening bilateral coordination in international organizations such as the United Nations, Shanghai Co-operation Organization, Asia-Europe Meeting and South Asian Association for Regional Co-operation.

Hu arrived in Pakistan on Thursday on the first visit by a Chinese president in a decade. His visit also marks the 55th anniversary of diplomatic relations.

"President Hu's visit is the high point in the 55th anniversary of the establishment of diplomatic relations," said Musharraf.

Regarding bilateral relations as "realistic, futuristic and multi-dimensional" in the political sector, Musharraf expressed the strong desire to pushing economic and trade relations.

At the press conference, Hu reiterated China's commitment to playing constructive role in helping India and Pakistan to resolve their decades-old disputes in Kashmir.

"South Asian countries are close neighbors to China. So as a neighbor and a friend to South Asia, China sincerely hopes to see peace and stability maintained on the sub-continent," Hu said.

"We are very much committed to playing our constructive role for peace, stability and development of the subcontinent," he added.

Musharraf called for the resolution of the Kashmir dispute, saying both India and Pakistan wanted peace.

Pakistan and India should "focus on the conflict resolution, and in conflict resolution, Kashmir happens to be the core," Musharraf said. "I would like to say in this regard that there is light at the end of the tunnel."

"I am optimistic that bilateral relations will move forward and (we) resolve our disputes in the future. That is my hope and desire of the people of Pakistan, it is also my desire to resolve the disputes permanently," he said at the joint press conference.

Hu yesterday also met Pakistan Prime Minister Shaukat Aziz and parliament leaders, delivered a speech on carrying on traditional friendship and deepening all-round co-operation. He met a group of Pakistan youth who study Chinese in Pakistan National University of Modern Languages.

The Chinese President will leave Islamabad today for Lahore to continue his four-day visit and he is scheduled to complete his visit on Sunday. Pakistan is his last leg of four-nation tour, which also includes Viet Nam, Laos and India.

1

2