Pakistan has requested unilateral tariff concessions on around 700 items from China as part of ongoing negotiations for the third phase of the China-Pakistan Free Trade Agreement (CPFTA), Business Recorder reported.
According to the news report, the National Assembly Standing Committee on Commerce, chaired by Jawed Hanif Khan, was briefed by Additional Secretary (In-charge) Salman Mufti.
The Commerce Ministry highlighted that Pakistan’s exports to China have increased since CPFTA Phase II, but preferential market access has eroded due to China’s agreements with other trading partners. In FY 2024–25, Pakistan’s exports to China stood at $2.375 billion, with $2.16 billion under the FTA framework.
Officials said negotiations aim to secure market access comparable to ASEAN and Bangladesh, alongside easing compliance through agricultural protocols and exploring a “Green Channel” at the Sust-Khunjerab border.
Committee members expressed concern over the limited diversification of exports and stressed the need to shift from raw material shipments to value-added products. Initiatives such as participation in major expos—including the China International Import Expo, China International Supply Chain Expo, and Pakistan’s own FoodAg, HEMS, and TEXPO—were highlighted as opportunities for joint ventures, technology transfer, and integration into global value chains.
The meeting also addressed licensing issues of district chambers, particularly in Karachi, with members confirming that the Karachi Chamber of Commerce and Industry (KCCI) would retain its status while allowing new district chambers to operate without undermining its role. “The Committee settled a long-standing issue regarding KCCI, affirming it will continue as the premier chamber,” an official statement said.
Other matters discussed included the lapse of the North Karachi Association of Trade and Industry (NKATI) license, delayed resolution of SRO 760 affecting gold trade, and accountability concerns at Pakistan Reinsurance Company Limited (PRCL), including a Rs500 million overpayment by a former CEO. The committee recommended reviving SRO 760 immediately and establishing a regulatory authority for gemstones and jewellery, citing India and Bangladesh as examples.
The committee also reviewed Pakistan’s Free Trade Agreements with Malaysia, Sri Lanka, and under SAFTA, noting structural flaws such as reliance on low-value exports, outdated agreements, high energy costs, and non-tariff barriers. Members emphasized the urgent need to enhance value-added production in textiles, minerals, and meat, which has an export potential of $5 billion.
The meeting concluded with a strong call for institutional reforms, strengthened trade official accountability, and leveraging international platforms to showcase Pakistani products. Representatives from the KCCI and senior Commerce Ministry officials, including Dr. Mirza Ikhtiar Baig, Tahira Aurangzeb, Gul Asghar Khan, and others, attended the session.
