New FTA with China expected by June next year

LAHORE: Pakistan is hopeful to complete the negotiation on existing and new tariff lines under the second phase of free trade agreement with China by mid of the next year, a top government official said on Tuesday.

Advisor to the Prime Minister on Commerce, Textile, Industry, Production and Investment Razak Dawood said the government is working on free trade agreements (FTA) with different countries, especially China.

“We are hopeful to complete the second FTA with China by June next year,” Dawood told media on the sidelines of the first international cement conference.

All Pakistan Cement Manufacturers Association (APCMA) hosted the conference.

Pakistan and China signed their first FTA in 2007 and since then bilateral trade – albeit increasing – tilts highly in favour of the latter.

The country’s trade deficit vis-à-vis China ballooned to nearly $10 billion in the last fiscal year of 2017/18.

Officials of both the countries expressed willingness to revisit products availing duty concessions, but the second round of FTA has been pending for long. The recent meeting of top officials of the countries revived the hope of benefits Pakistan might get in bilateral trade with the world’s second largest economy.

PM Advisor Dawood further said the government has no plan to award most favored nation (MFN) status to Pakistan. “There is no proposal from Pakistan’s end to give India the MFN status.”

Dawood said it will take some time before Pakistani economy could enter into sustainable mode.

“The world has started giving positive vibes and export orders are on a rise,” he said.

“Participation of delegations from 20 countries in cement conference is the signal that investors are now looking towards Pakistan.”

The advisor underscored the need to focus on ‘Made-in-Pakistan’ culture as it will make the country self-sufficient.

“Pakistanis should work on increasing exports volume as it is the only method to attain sustainable growth,” he said.

“We are trying to give a level-playing field to all export-oriented industries by providing them energy at lower tariffs.”

The advisor to PM said cement sector is playing a pivotal role in infrastructural development and China Pakistan

Economic Corridor-led projects have further fueled the

sector’s performance and taken the industry’s output at a record level.

“Cement sector is playing a great role in creating employment opportunities, infrastructural developments,” he said. “Currently six new cement plants in Pakistan are underway and it is expected that this sector will push export figures to one billion dollar mark soon” from the existing $600 million.