China, Pakistan Ink Free Trade Agreement

Avatar para Matt Hopkins Por Scott C. Lucas|27 de novembro de 2006

The FTA, along with 17 other documents signed, covered wide-ranging areas of common interest, such as trade, energy, communication, and agriculture. Chinese President Hu Jintao and Pakistan President Pervez Musharraf held in-depth talks to increase cooperation between the two countries. The signing ceremony was held at Aiwan-e-Sadr.

Part of the agreement was the founding of a five-year joint development program on trade and economic cooperation, which included the establishment of a Joint Investment company.

The FTA will be effective from July 1, 2007, and will eliminate tariffs on hundreds of items for import and export between the two countries. According to the Pakistan Commerce Ministry, the FTA will be implemented in two phases, and the on-going Early Harvest Programme will become its substantive part. Pakistani importers will get substantial duties’ reduction on export of raw textile material, mineral products, chemicals and fishes.

The other documents signed between the two countries are:

  • Authorizing the relevant departments to establish Consulate General of Pakistan in Chengdu.
  • Executive programme of the Cultural agreement between the two countries for the year 2007-2009.
  • Agreement on economic and technical cooperation in specific fields.
  • Exchange of Letters authorizing the Construction of China-Pakistan Friendship Centre in Islamabad.
  • Framework agreement on security of financing for China-Pakistan bilateral cooperation.
  • Exchange of Letters authorizing construction of schools and hospitals in earthquake-hit areas in Pakistan.
  • Memorandum of Understanding (MoU) regarding financial support for up- gradation and rehabilitation of Karakorum Highway.
  • Transfer of completion certification of Gwadar port (phase-I).
  • Contract Agreement on KKH improvement project (Raikot to Khunjerab).
  • Framework Agreement between China North Industries Corporation and Heavy Industries Taxila (HIT).
  • Huawei-PTML-PTML GSM Phase-V Expansion project contract agreement.
  • MoU between China Zhenhua Oil Company Limited and Ministry of Petroleum and Natural Resources.
  • Agreement on exploration and development of Saindak East project.
  • Agreement between Qingqi Group and National Bank of Pakistan on collaboration in President’s rozgar scheme.
  • China’s PVC back integrated complex on Engro Ashahi polymer and chemical, limited Pakistan.

Private Sector Agreements

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The meeting also finalized 13 separate agreements and MOUs involving private sector bodies. The combined value of these agreements is an estimated US $3 billion in joint ventures and other cooperative programs.

The Pakistani side was represented by Minister of State for Privatization and Chairman Board of Investment (BOI) Umar Ahmed Ghuman, while the Chinese delegation was led by Zhen Yiwel, vice chairman of the Chinese Federation of Industry and Commerce.

The projects to be carried out by these jointly-owned or operated companies included activities in the fertilizer and pesticides sectors, as well as in hotels, housing, industrial parks, cement, transportation, chemicals, and energy.

These agreements are expected to enhance trade between China and Pakistan, create job opportunities, and lower prices for consumers in both countries.

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