An agreement to build the 27-kilometre "Lahore Orange Line Metro" was signed between the two countries coinciding with the visit of Pakistan President Mamnoon Hussain to Shanghai to attend the Conference on Interaction and Confidence Building Measures in Asia (CICA).
Hussain met Chinese President Xi Jinping on the sidelines of the conference today.
Punjab Chief Minister Shahbaz Sharif signed the agreement at a ceremony witnessed by Hussain and Xi, Pakistan's APP news agency reported.
The elevated mass transit project in Lahore is aimed to facilitate commuters' movement in the city, the report said.