LAHORE: The federal government, amid demands from the local business community, has delayed the second phase of the Free Trade Agreement (FTA) with China, reported a local english daily.
Federal Minister for Commerce and Textile Muhammad Pervez Malik, however, clarified that the FTA has not been dropped, but has merely been delayed because of the concerns raised by the business community.
The 10th round of bilateral negotiations between Pakistan and China on the renewal of an FTA began on April 2 in Islamabad. An agreement was expected to be reached during this round and the Pakistani side was hoping to make a formal announcement during Prime Minister Shahid Khaqan Abbasi’s upcoming visit to China later this month.
Even though bilateral trade between the two countries has increased to $14 billion since the implementation of the first FTA in November 2006, Pakistan’s trade balance with China has worsened considerably. Exports to China have grown at a lower rate than imports. As of 2016 Pakistan exports to China stood at $1.7 billion whereas imports stood at a whopping $14 billion.
