ISLAMABAD - Pakistan and China signed an agreement here on Saturday on the serial production of JF-17 (Thunder) aircraft. The agreement was signed between Pakistan Air Force (PAF) and Chinese firm CATIC that paved the way for the serial production of JF-17 (Thunder) aircraft in the near future. According to the agreement, 42 fighter jets would be jointly produced for use of the PAF. The agreement signed on behalf of PAF by Chairman Pakistan Aeronautical Complex, Air Marshal Khalid Chaudhry and President CATIC MA Zhiping was witnessed by Chief of the Air Staff PAF, Air Chief Marshal Tanvir Mahmood Ahmed and Ambassador of China to Pakistan Luo Zhaohui besides other senior officials from both the parties, said an official statement. The Air Chief Marshal congratulated the peoples and governments of Pakistan and China on conduction of successful tests and trials of the most modern aircraft of its class and signing of agreement for start of their serial production. He said that despite all odds the two sides had been successful to reach the stage of starting serial production of the aircraft. He said, "In the beginning we will produce 15 aircraft annually and their number will increase to 30 in a year, this programme will be carried out in phases." He said the first squadron of those highest quality fighter jets would be inducted in the PAF's fleet by mid of current year as PAF had already been using 8 jointly produced aircraft for the last couple of years. About the delivery of AWACS system to Pakistan, he said that agreement had already been reached with a Chinese firm, which would start its delivery by 2010. On the delivery of first AWACS system Pakistan would pay 10 per cent cost of the aircraft while the rest would be paid through easy installments. He said that the agreement between Pakistan and China for the delivery of High-Tech aircraft J-10 was intact and those aircraft after improving them further would be delivered to PAF in 2014-15. He said those aircraft were being modernized in accordance with the PAF's requirements and delivered under the title of FC-20.