According to official figures, Pakistan`s bilateral trade volume increased to about $15.6 billion in FY2019, up from $2.2 billion in 2005. The volume of trade resulting from the agreement between the two countries amounted to $13 billion in 2013 and reached $20 billion in 2017, when the two countries signed 51 agreements and memoranda of understanding (MoUs) of cooperation in various fields.  China had already contributed significantly to Pakistani imports before the signing of the free trade agreement and had experienced a significant improvement in its ranking after the implementation of the free trade agreement in 2007. Until 2012, it was the source of 15% of pakistan`s total imports from the world, up from 9.8% in 2006.   3. Among the main features of the Phase II agreement are: Awan added that it is the country`s textile sector that will benefit the most under the agreement. In the 2017-2018 fiscal year, the volume of trade between China and Pakistan amounted to $13.2 billion, or 16.4% of Pakistan`s trade volume. Chinese President Hu Jintao and his Pakistani counterpart Pervez Musharraf on Friday oversaw the signing of a free trade agreement between the two allies here in Islamabad on November 24, 2006. The document was signed by the trade ministers of both countries. Pakistan already enjoys zero tariffs on the export of 724 products to China under the first free trade agreement signed between the two countries in 2006. After the implementation of the Second Pact, Pakistan was allowed to export more than 1,000 products to China duty-free. Last year, Pakistan signed an agreement with China to use the Chinese currency for bilateral trade, in order to get rid of the dollar`s burden in bilateral trade of $15 billion. The Agreement shall contain the articles on the establishment of a free trade area, objectives, relations with other agreements, the application of this Agreement, definitions, scope and scope, national treatment, elimination of customs duties, para-tariffs and non-tariff barriers, rules of origin, protective measures, sanitary and phytosanitary measures, OEE, investments, modifications, annexes, etc.
The reference programme between the two countries, which went into operation on 1 January 2006, was merged into this bilateral free trade agreement. In the package as a whole, Pakistan is granted zero market access on industrial alcohol, cotton, sheets and other household textiles, marble and other tiles, leather goods, sporting goods, mangoes, citrus fruits and other fruits and vegetables; Steel products and machinery. China will also reduce its tariffs on fish and the dairy sector by 50%; frozen orange juice; plastic products; rubber products; leather products; knitwear; “I congratulate China on the implementation of the second phase of the free trade agreement, which will improve bilateral trade and facilitate the export of their products to the Chinese market without customs for Pakistani traders,” Firdous Ashiq Awan, special assistant to the prime minister of information and radio, said on Twitter. The protocol provides that the share of tariff lines with non-tariff products between China and Pakistan will gradually increase from 35% to 75% over a period of 10 years, as implemented by China and 15 years by Pakistan. . . .