Pakistan, China review progress on nearly 700 items under CPFTA Phase III

ISLAMABAD: Pakistan and China have reviewed the progress of approximately 700 items under the third phase of the China-Pakistan Free Trade Agreement (CPFTA). During fiscal year 2024–25, Pakistan’s total exports to China reached $2.375 billion, with $2.16 billion falling under the FTA framework.

The discussions, which took place during a high-level meeting between Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, and Chinese Ambassador to Pakistan Jiang Zaidong, focused on expanding market access and easing trade compliance. Efforts are currently underway to secure market access for Pakistan on par with ASEAN countries and Bangladesh, as well as to reduce regulatory burdens in agriculture through new protocols.

A key point of the meeting was the exploration of establishing a “Green Channel” at the Sust-Khunjerab border to facilitate smoother trade flows. The discussions underscored 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 highlighted Pakistan’s commitment to boosting exports by leveraging both Government-to-Government (G2G) and Business-to-Business (B2B) cooperation channels to accelerate trade growth.

The two sides also engaged in discussions about improving agricultural exports, with both parties reviewing the current trade framework and identifying new opportunities for collaboration. The Chinese Ambassador emphasised the importance of agricultural trade and provided insights into China’s import regulatory framework, with both sides agreeing to continue fostering dialogue for further progress.

Pakistan’s trade imbalance with China remains a concern, as imports from China totalled $20.8 billion in 2020–21, while exports were only $3.1 billion. In 2024–25, imports stood at $17 billion, while exports reached $2.7 billion.

Members of the meeting noted that Pakistan continues to export raw materials like copper and cotton, which return as high-value products. There was a strong call for increasing value-added production in textiles, minerals, and meat, which holds significant export potential of up to $5 billion.

The meeting concluded with both sides reaffirming their commitment to deepening economic ties and exploring new opportunities in trade and investment, further strengthening the longstanding Pakistan-China partnership.