China and Pakistan signed a total of 18 deals on Friday, including a free trade agreement (FTA), as the presidents of the two countries promised to raise their friendship to a new level.

Besides the FTA, the two countries also signed a five-year economic and trade development programme, China's first with another country, which is expected to further boost Sino-Pakistani economic ties.

President Hu Jintao and his Pakistani counterpart Pervez Musharraf said bilateral economic co-operation has great potential given that the two sides are "all-weather friends."

China-Pakistan trade grew nearly 40 per cent last year to reach US$4.26 billion.

Other agreements covered areas such as telecommunications, infrastructure, science and technology, culture, health and defence. In addition, China agreed to the establishment of a Pakistani consulate in Chengdu, the capital of Southwest China's Sichuan Province.

After their talks, the two presidents witnessed the signing of the agreements, which did not include an expected one on nuclear co-operation.

President Hu told a joint press conference that the two countries had reached an understanding on future energy co-operation, covering hydropower, coal-based power generation and new sources of energy.

"As you know, China and Pakistan already have good co-operation in the development of the Chashma nuclear power plant. In the future, we will continue to carry out our co-operation," said Hu.

At present, China-Pakistan nuclear energy co-operation is mainly focused on the Chashma nuclear power plant in the eastern province of Punjab, where the first stage has already been completed.

Hu, describing Pakistan as "good neighbour, good friend and good brother," made a five-point proposal to advance bilateral relations, which included increasing official exchanges at all levels and expanding investment.

China has decided to establish the Haier-Ruba economic zone in the eastern Pakistani city of Lahore to boost economic and trade links. Hu also invited 500 Pakistani young people to visit China over the next five years.

His proposals also included an enhanced partnership in the fight against terrorism and strengthened bilateral co-ordination in international organizations.

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 his strong desire to promote economic and trade relations.

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

Hu also met on Friday with Pakistani Prime Minister Shaukat Aziz and parliamentary leaders, as well as with a group of Pakistan young people studying Chinese at the Pakistan National University of Modern Languages.