ISLAMABAD: Pakistan and China have completed first phase of implementation of Free Trade Agreement (FTA) 2012-13 and during this period exports to China recorded growth of 320 per cent.
Similarly, during the period, the imports grew at 120 per cent, sources at Commerce Division said here on Monday.
The sources said in order to better utilize concessions and address concerns of the domestic industry, Ministry of Commerce has started negotiations on 2nd phase of FTA with Chinese side.
They said during the negotiations, Chinese side has agreed to negotiate the tariff reduction modality for 2nd Phase on the principle of less than equal reciprocity in favour of Pakistan.
The negotiations will continue during the next fiscal year, with the objective of allaying the concerns of domestic industry.
The sources said Pakistan's bilateral trade relations with Afghanistan, China and Iran have remained very cordial. Afghanistan is one of Pakistan's major trading partners. Pakistan has a Free Trade Agreement with China, and a Preferential Trade Agreement with Iran.
With regard to steps taken by the government to further improve trade relations with Afghanistan, the sources said to address issue of bilateral trade and transit with Afghanistan, 5th Afghanistan-Pakistan Transit Trade Coordination Authority (APTTCA) meeting was held on January 1-2, 2015.
Various measures were suggested by the Authority to facilitate Afghan transit trade through Pakistan. Furthermore, to enhance bilateral trade between Pakistan and Afghanistan, Pakistan proposed a Preferential Trade Agreement between the two countries. Draft PTA has been shared with the Afghan side.
Moreover, to further liberalize bilateral trade with Iran, Pakistan proposed FTA with Iran and a draft text of Pak-Iran FTA has already been shared with Iranian side.
The Iranian side regretted that due to economic hardships as a result of International sanctions, FTA was not possible at that stage. However, the Iranian side has agreed to deepen the tariff concessions under PTA.
The sources said 7th Meeting of Pak-Iran Joint Trade Committee, co-chaired by Commerce Ministers of two countries was held in April, 2015 in Tehran where an understanding on deepening of PTA was reached.
Furthermore, it was agreed between the both countries that a five year strategic action plan will be formulated to enhance cooperation.
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