Pakistan and China have also agreed to replace current communication satellite PAKSAT-1 with Paksat-1R which will be launched on Aug. 14, 2011.

A highly-placed official from Ministry of Defense Production told Arab News: “We have agreed to develop in Pakistan and China advance satellite imagery gathering system, guidance system and early warning system for intruding missiles.

The official said an agreement for the project was signed between SUPARCO and China Great Wall Industry Corporation in the presence of President Asif Ali Zardari in Beijing in October 2008.

The  agreement for the ground control segment of the satellite was signed in October 2009 during Prime Minister Yusuf Raza Gilani’s visit to China. A Framework Loan Agreement between the two governments was signed in June 2010. Under the agreement, the Chinese government would provide RMB 86.5 million concessional loan for the ground control segment.

Militaries of Pakistan and China have already cleared the project. Experts from ground, air and naval forces of the two countries will be involved in the project during R & D stages and later during its physical implementation, officials said.