Boosting Bilateral Trade: Pakistan-China FTA Updates
Pakistan and China have reviewed the progress of nearly 700 items under the third phase of the China-Pakistan Free Trade Agreement (CPFTA). During the 2024–25 fiscal year, Pakistan’s exports to China reached $2.375 billion, with $2.16 billion falling under the FTA framework.
The discussions took place during a high-level meeting between Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, and Chinese Ambassador to Pakistan, Jiang Zaidong. The agenda focused on expanding market access, easing trade compliance, and aligning Pakistan’s access with that of ASEAN countries and Bangladesh. Regulatory burdens in agriculture are also being addressed through new protocols to support smoother trade flows.
P.c. China Pakistan Economic Corridor
One significant proposal discussed was establishing a “Green Channel” at the Sust-Khunjerab border to facilitate faster and more efficient trade. The meeting highlighted the strategic importance of strengthening bilateral economic ties, particularly in the agriculture sector.
Pakistan’s delegation, led by the Commerce Minister, included senior officials from the Ministry of Commerce, Trade Development Authority of Pakistan (TDAP), and the Ministry of Foreign Affairs. Minister Jam Kamal Khan emphasised Pakistan’s commitment to boosting exports through Government-to-Government (G2G) and Business-to-Business (B2B) cooperation channels to accelerate trade growth.
The talks also focused on enhancing agricultural exports. Both sides reviewed the existing trade framework, identified new areas for collaboration, and discussed China’s import regulations. The discussions reaffirmed the importance of continuing dialogue to strengthen trade relations.
Pakistan’s trade imbalance with China remains a concern. In 2020–21, imports from China totalled $20.8 billion, while exports were $3.1 billion. By 2024–25, imports stood at $17 billion, while exports reached $2.7 billion.
The meeting noted that Pakistan primarily exports raw materials such as copper and cotton, which return as high-value products. There is a strong focus on increasing value-added production in textiles, minerals, and meat, with potential exports of up to $5 billion.
Both sides concluded the meeting by reaffirming their commitment to deepening economic ties, exploring new trade and investment opportunities, and strengthening the longstanding Pakistan-China partnership.