Pak-China FTA (2nd phase) comes into force today.
Beijing -- Pakistan and China trade will get a big a boost with the implementation of second phase of their free trade agreement from today, December 1. According to China Economic Net, it will be a big way forward to correct balance of trade between the two countries that is currently heavily in favour of China.
The free trade arrangements reflect the desire of the Chinese top leadership to promote their trade ties with Pakistan on equal basis and to have a win-win situation in their economic relationship.
China has agreed for the immediate elimination of tariffs on 313 most priority tariff lines of Pakistan's export interest giving treatment on a par with ASEAN. These 313 tariff lines cover over US$ 8.7 billion worth of Pakistan's worldwide exports and US$ 64 billion worth of Chinese global imports. While this will help to lessen Pakistan's trade deficit, it also provide a support to the country's overall economic growth. In terms of the complete offer made by China, over US$19 billion of Pakistan's exports will be covered, which corresponds to US$1.6 trillion of the Chinese global imports.
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