LAHORE - The Ambassador of China in Pakistan, Luo Zhaohui, has said that Chinese embassy is planning to open its commercial office in Lahore soon to facilitate the people in general and the business community in particular.  The Ambassador was speaking at the Lahore Chamber of Commerce and Industry here on Monday. LCCI President Mohammad Ali Mian, Senior Vice President Mian Muzaffar Ali, Vice President Shafqat Saeed Piracha, former LCCI Presidents Mian Misbahur Rehman, Shahid Hassan Sheikh and former Senior Vice President Sohail Lashari aso spoke on the occasion.  The Ambassador said that the Chinese embassy had decided to open an office in Lahore keeping in view the problems being faced by the people who want to visit China.  He said that both the Pakistan and China had huge potential to increase the bilateral trade as the existing volume of two-way trade of $ 7 billion between the two countries is very small when it is compared with the total Chinese business of $2.2 trillion with the other countries of the world.  He said that political stability in any country was a prerequisite for Direct Foreign Investment and bilateral trade. He said that Pakistan is the first Asian country with which China had initiated Free Trade Agreement and this was enough to make the point that China gives top priority to Pakistan in terms of business and trade. He cited the example of setting up of Pak-China Joint Investment Company that is first of its kind China had established with any country of the world.  The Ambassador said that he had meetings with Governor Punjab and the Chief Minister and found them very pragmatic. He said that both the personalities were very optimist about the future trade relations between Pakistan and China.  Speaking on the occasion, the LCCI President Mohammad Ali Mian invited Chinese businessmen to invest in Pakistan in priority sectors including Oil and Gas, Mining, Infrastructure, Power (Coal, Hydel, Gas Based), IT & Telecom, Chemicals (Fertilizer (urea), Glass, PV & Polymers), value added Textile Manufactures, Engineering Goods, Textile Machinery, Electronics, Automotives, Agricultural & Agro based Industry, Pesticides, Cool Chains, Food & Fruit Processing and Packaging, Live Stock & Dairy Farming.  He said Pakistan because of its strategic location could be a more suitable destination for Chinese investments.  Pakistan is offering liberal investment policies allowing 100% foreign equity and equal treatment to local & foreign investors. He said Pakistan has a network of Export Processing Zones and industrial estates ready to accommodate Chinese investors especially in Punjab Province.  He informed the Ambassador that the LCCI is shortly organizing a special seminar on Pak China Investment Opportunities for improving the five-year development programme on Trade and Economic Cooperation between two countries.  He said globalisation had provided Chinese investors a golden opportunity to relocate their large-scale industry to Pakistan to reap the benefits of its most conducive business policies as compared to other regional countries. As per available figures as many as 10,000 industries are relocating per annum in China.  He said the trade between Pakistan and China through proper channel has increased from US$ 1,489 million in 2004-05 to US$ 2,956 million in 2006-07 showing an increase of around 100% over a period of three years. The volume of trade between the two countries is expected to increase to US$ 15 billion over the next 5 years as a result of FTA between the two countries.  Mohammad Ali Mian said that the balance of trade between the two countries is heavily in favour of China, which requires to be turned into a win - win situation for both the countries. Major imports of Pakistan from China include iron, steel products, tyres, tubes, chemical, medical, pharma products, fertilizers, yarn and thread of synthetic fiber, railway vehicles, spare parts, hand tools and hardware products etc.  The LCCI President said that the government has prepared a special incentive package for the Chinese companies under Special Economic Zone, which offers exemption of custom duties (on import of machinery/equipment) income tax and sales tax to attract foreign investment from China.  Likewise, he added, Pakistan IT industry is growing at a rate of 12% per annum. 12 lakh computers are sold in local market out of which around 50% PCs are assembled by local vendors. We are of the opinion that Chinese companies should come forward for joint ventures to produce key boards, mouse, power supply and casing in Pakistan. For match making, the LCCI can offer its services to the interested Chinese investors.