Pakistan has sought unilateral tariff concessions from China on nearly 700 items as part of the ongoing negotiations for the third phase of the China-Pakistan Free Trade Agreement (CPFTA), officials told the National Assembly Standing Committee on Commerce.
Push for Greater Market Access
The Commerce Ministry, represented by Additional Secretary Salman Mufti, informed the committee that while exports to China had improved after Phase II of the CPFTA, Pakistan’s preferential market access has weakened due to Beijing’s FTAs with other partners. In FY 2024–25, Pakistan’s exports to China reached $2.375 billion, of which $2.16 billion were under the FTA framework. Negotiators are now pressing for access equal to ASEAN and Bangladesh, alongside easing compliance through agricultural protocols and exploring a “Green Channel” at the Sust-Khunjerab border.
Calls for Export Diversification
Committee members voiced concern over Pakistan’s continued reliance on raw material exports, stressing the urgency of shifting toward value-added goods. They urged stronger participation in international expos such as the China International Import Expo, China International Supply Chain Expo, and Pakistan’s own TEXPO, FoodAg, and HEMS, to secure joint ventures and technology transfer.
Karachi Chamber Dispute Settled
The long-standing issue of district chambers in Karachi was also resolved. The committee affirmed that the Karachi Chamber of Commerce and Industry (KCCI) would retain its premier status, while allowing new district chambers to operate without undermining its role.
Other Key Issues
The panel discussed the lapse of the North Karachi Association of Trade and Industry’s license, delays in resolving SRO 760, which has frozen gold trade, and accountability concerns at Pakistan Reinsurance Company Limited (PRCL), including a Rs500 million overpayment by a former CEO. Lawmakers called for the immediate revival of SRO 760 and the creation of a regulatory authority for gemstones and jewellery, citing India and Bangladesh as examples.
Trade Imbalance with China
The committee noted Pakistan’s persistent trade deficit with China. Imports in 2024–25 stood at $20.8 billion against exports of just $2.7 billion. Members warned that Pakistan’s dependence on low-value exports such as copper and cotton, which return as high-value finished goods, is unsustainable. They urged value addition in textiles, minerals, and meat, which alone holds $5 billion export potential.
Wider FTA Review
Lawmakers also reviewed Pakistan’s FTAs with Malaysia, Sri Lanka, and under SAFTA. While progress was noted in certain sectors, structural flaws, outdated agreements, high energy costs, and non-tariff barriers continued to undermine competitiveness. Members emphasised institutional reforms, stronger accountability of trade officials abroad, and a sharper focus on value-added exports to secure long-term sustainability.
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