Pakistan hopes to complete the second FTA with China by June next year. Pakistan and China signed their first FTA in 2007 and since then bilateral trade – albeit increasing – has tilted heavily in favor of the latter.

The country’s trade deficit vis-à-vis China ballooned to nearly $10 billion in the last fiscal year of 2017-18. Both countries have expressed willingness to revisit products availing duty concessions, but the second round of FTA has been hanging fire for too long.

Pakistan hopes to get bilateral trade benefits with the world’s second largest economy. Pakistan will request China to remove other non tariff barriers so that it can boost exports. Duty free market access to China will boost exports of Pakistan’s made-ups.

Pakistan and China will decide how much textile, leather, and other goods can be exported to fully utilise the duty free facility. At this stage, the list of products that would be eligible for duty-free has not been prepared. There will be further discussions on finalising details of market access and the balance of payment support. Industrial cooperation will be accelerated and both sides have decided to move with the next phase with a focus on industrial expansion, agricultural revitalisation and integration of trade ties.