ISLAMABAD: China has extended duty free access on 90 per cent Pakistani exports under Pak-China Free Trade Agreement (FTA)-2, while Pakistan has offered duty free access to China on its 67 per cent exports to Pakistan.
According to media reports under this offer Pakistan will now be able to export 90 percent products duty free to China. In return China will be entitled to export its 67 percent products duty free to Pakistan.
Under FTA-2 the two countries have shown willingness to open tariff lines up to 75 per cent. However consultation process is underway on this count.
Imports from China surged by $7.50 billion during the last five years while exports from Pakistan to China declined by $850 million during this period.
Annual imports volume from China stood at $6.64 billion in the financial year 2013 which grew to $14.13 billion in the financial year 2017.
Likewise Pakistan exports volume for China stood at $2.61 billion in the fiscal 2013 which scaled down to $1.64 billion in the financial year 2017.
Pakistan exports cotton, yarn, rice, vegetables, fish and other goods to China and imports machinery, manufacture fertilizers, iron, steel, vehicles, parts of the vehicles, tyres, tubes and other goods from China.
