Free Trade Agreements of Pakistan with Other Countries

Free Trade Agreements (FTAs) are bilateral or multilateral trade agreements that are designed to pave the way for free trade between participating countries. Pakistan has signed several FTAs with various countries around the world to promote its exports and strengthen its economic ties. In this article, we will take a closer look at some of the significant FTAs that Pakistan has signed and their impact on the country`s economy.

China-Pakistan Free Trade Agreement (CPFTA)

The China-Pakistan Free Trade Agreement (CPFTA) is one of the most significant FTAs that Pakistan has signed recently. The agreement was signed in 2006 and came into effect in 2007. Under this agreement, Pakistan has granted duty-free access to over 3000 products of Chinese origin, while China has provided duty-free access to over 800 products of Pakistani origin.

The CPFTA has been instrumental in promoting Pakistan`s exports to China. In 2019, Pakistan`s exports to China surged by 34% as compared to the previous year, reaching a record high of $2.2 billion. The agreement has also encouraged Chinese investment in Pakistan, particularly in the infrastructure sector.

Pakistan-Turkey Free Trade Agreement

The Pakistan-Turkey Free Trade Agreement (PTFTA) was signed in 2012 and came into effect in 2013. Under this agreement, Pakistan has granted duty-free access to over 700 products of Turkish origin, while Turkey has provided duty-free access to over 500 products of Pakistani origin.

The PTFTA has strengthened the economic ties between Pakistan and Turkey. In 2019, Pakistan`s exports to Turkey increased by 27%, reaching $767 million. The agreement has also created opportunities for Pakistani businesses to expand their market access in Turkey, particularly in the textile and automotive sectors.

Pakistan-Sri Lanka Free Trade Agreement

The Pakistan-Sri Lanka Free Trade Agreement (PSFTA) was signed in 2002 and came into effect in 2005. Under this agreement, Pakistan has granted duty-free access to over 4,000 products of Sri Lankan origin while Sri Lanka has provided duty-free access to over 102 products of Pakistani origin.

The PSFTA has promoted bilateral trade between Pakistan and Sri Lanka. In 2019, Pakistan`s exports to Sri Lanka amounted to $355 million, showing an increase of 21% as compared to the previous year. The agreement has also created opportunities for Sri Lankan businesses to expand their market access in Pakistan, particularly in the textile and tea sectors.

Conclusion

Free Trade Agreements have played a vital role in promoting Pakistan`s exports and strengthening its economic ties with other countries. The above-mentioned agreements have created opportunities for Pakistani businesses to expand their market access, particularly in the textile sector, which is the country`s largest export sector. These agreements have also encouraged foreign investment in Pakistan, which is essential for the country`s economic growth. Going forward, Pakistan can explore more FTAs with other countries to expand its export potential and improve its economic performance.

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