Pakistan and China Sign Free Trade Agreement
Pakistan and China signed a free trade agreement (FTA) on January 13, 2023. The agreement is expected to boost trade between the two countries and create new opportunities for businesses and investors.
The FTA will eliminate tariffs on most goods traded between Pakistan and China. It will also reduce non-tariff barriers, such as customs clearance procedures. The agreement is expected to increase trade between the two countries by up to 30%.
The FTA is a significant achievement for Pakistan. It is the country’s first FTA with a major economic power. The agreement is expected to help Pakistan diversify its exports and attract foreign investment.
The FTA is also a sign of the growing economic cooperation between Pakistan and China. The two countries have been working together on a number of infrastructure projects, including the China-Pakistan Economic Corridor (CPEC). The FTA is expected to further strengthen the economic ties between the two countries.
Impact of the FTA
The FTA is expected to have a number of positive impacts on the Pakistani economy. It is expected to increase trade, create jobs, and attract foreign investment. The agreement is also expected to help Pakistan diversify its exports and reduce its trade deficit.
Challenges
There are some challenges that Pakistan will need to address in order to fully benefit from the FTA. These challenges include:
Increasing the competitiveness of Pakistani businesses: Pakistani businesses will need to become more competitive in order to take advantage of the FTA. This will require them to improve their productivity and reduce their costs.
Addressing non-tariff barriers: The FTA will reduce tariffs, but it will not eliminate all non-tariff barriers. Pakistan will need to address these barriers in order to ensure that the FTA is fully implemented.
Conclusion
The signing of the FTA between Pakistan and China is a significant achievement. The agreement is expected to boost trade, create jobs, and attract foreign investment. However, there are some challenges that Pakistan will need to address in order to fully benefit from the FTA. If Pakistan can address these challenges, the FTA has the potential to significantly transform the Pakistani economy.