ISLAMABAD: The Ministry of Commerce has convened a business conclave to ascertain their concerns, insight, and ambition on the proposed second-generation free trade agreement (FTA) with China on August 4 in Karachi.
An official of the Commerce Ministry said the business conclave is arranged to address the serious concerns of the manufacturers and industrials that think opening up further trade with China could cause more loss to the local industry. Even the conglomerate of top businesses, the Pakistan Business Council, has warned against signing another FTA with China citing adverse effects of the in vogue FTA.
The source said that the a special research study commissioned by the Commerce Ministry has found these concerns not genuine, as it says FTA with China has helped local manufacturing and industry thrive. The results of the study will be shared with the businesses in Karachi to be followed in other cities.
It is important to mention that Pakistan and China are negotiating to revise the FTA for the last two year. Pakistan has demanded concessions for more tariff lines but China has shown non-commitment on the issue.
China and Pakistan have different trade statistics, as Pakistani side claims that the bilateral trade between Pakistan and China was around $4 billion in 2006-07, which reached all time high of $12 billion in 2014-15. Pakistan’s exports jumped to $2.1 billion in 2014-15 from $575 million in 2006-07. On the other hand, China side claims the trade around $19 billion. China’s exports to Pakistan increased to $10.1 billion in 2014-15 from $3.5 billion in 2006-07.
The source said that both countries held six meetings to revise the FTA but negotiation could not come to conclusion. Furthermore, both countries’ officials will meet again in September this year to finalise the FTA-II.
It is worth mentioning that due to FTA, Pakistan had to face Rs 176 billion revenue losses in eight years.
The Ministry of Commerce had announced in June to summon a stakeholders’ meeting after the Eid to review the trade pact with china and other countries on bilateral basis and this seminar was called on in this regard.