As Chinese capital begins the long overdue regionalisation of Pakistan’s economy, Islamabad should be able to overcome its current political inhibitions on trade with India. The challenge for India, then, lies in creating special economic zones in East Punjab that could feed into and gain from China’s new economic presence across the border.

Free trade pact, 18 others

• China and Pakistan sign 18 agreements, including a free-trade pact aimed at boosting trade from $ 4.26 billio now to $ 15 billion in five years

• No deal announced on nuclear power, though Hu had promised nuclear energy cooperation

• China to collaborate on airborne early warning surveillance system

• Other agreements cover telecom, infrastructure, science & technology, culture

• The two countries have agreed on a five-year plan to boost economic ties

• Chinese and Pakistani companies have struck 13 joint -venture agreements worth $ 3 billion,in chemicals, construction, energy and tourism