ISLAMABAD, MAY 16, SPA -- Pakistan and China have signed an agreement for launch of Islamabad-Kashgar bus service from August 1 while the free trade agreement between the two countries will be implemented from July 1, said an official statement. Additional Secretary Communications Muhammad Abbas signed the agreement from Pakistan side and Provincial Minister of Sinkiang province from China side. Gilgit-Kashgar bus service was launched by the two countries last year which is being run successfully. Arrangements for launch of new bus service will be finalised in a meeting in Islamabad next month. China has also presented a proposal for launch of Urmachi-Islamabad bus service, which will also be discussed in next month meeting. The Pakistan side explained details about strategic economic corridor and it was decided that goods transport agreement would be implemented from July 1. Pakistan also proposed that economic corridor should be extended to Urmachi. The Chinese side ensured that Karakoram Highway would be upgraded by 2010. The two sides agreed to increase number of permits for goods trade between the two countries.--SPA www.spa.gov.sa/450298