If this is signed this will be a historic foreign policy achievment for Pakistan, especially as China is set to become a world economic superpower. :k:
Re: China and Pakistan set to sign free-trade pact
Great news
Re: China and Pakistan set to sign free-trade pact
There goes Pakistan's domestic market..... I hope not, though
Re: China and Pakistan set to sign free-trade pact
FRee trade with China will hurt pakistan's indigenous manufacturers to a degree but will lower the cost of many retail items as well. This includes cars that are currently being offered at huge "own" prices and are mostly on back order. So the small car market will be hit with an influx of the cheap chinese cars and mini-trucks. Where as the other markets will also be hit such as hosiery, shoes, sporting goods.
Lets see. Currenltly there are many joint ventures already in place for small chinese cars and trucks being made in Pakistan with chinese technology.
Re: China and Pakistan set to sign free-trade pact
I hope China will invest more in Pakistan on infracstructure and factories. I see a lot of potential in Pakistan, but a lot of obstacles too.
But the Chinese businessmen sometimes can be ruthless. If the Pakistanis want something from them, they need to bargain hard.
Re: China and Pakistan set to sign free-trade pact
Plan to upgrade Karakuram Highway
Pakistan and China are likely to sign a contract during the forthcoming visit of Chinese president Hu Jintao to upgrade and expand the Karakuram Highway. Under the agreement, the Chinese government will initially provide $40 million to meet immediate requirements. The China Road and Bridge Corporation (CRBC), a state-owned construction firm, has completed a feasibility study for the purpose. Administrative and financial arrangements have been worked out with the Pakistani authority to initiate the project as soon as possible. According to China’s Assets Supervision and Administration Commission (ASAC), it has sent proposals to relevant institutions in Pakistan for a formal contract. Earlier, the two countries signed a memorandum of understanding to pave the way for practical operation of the project.
The estimated cost of the project is $794 million. It has been suggested that 90 per cent of the cost will be met by the balance of the preferential export buyer’s credit committed by the government of China in November 2003 and the remaining 10 per cent will be born by Pakistan. Other potential sources will be sought in case of any shortfall. As per understanding, the CRBC will be in charge of the design and reconstruction of the highway as the general contractor. At the first stage, the 335-kilometre road between the Raikot bridge and the Khunjerab pass will be rebuilt and upgraded. The two sides have agreed to complete the drawing of the blue print, listing work items and signing commercial contracts by the end of October and try to start working by the end of the year. According to ASAC sources, the width of the highway will be expanded from 10 metres to 30 metres and its transport capacity will be enhanced three times. Heavy vehicles will be able to run on the road after the upgrade
Re: China and Pakistan set to sign free-trade pact
Very good news... Although im not an economist so I dont know how exactly this will benefit Pakistan, I do know it may mean a flood of cheap products in the domestic market which would make it harder for local producers to compete.
Re: China and Pakistan set to sign free-trade pact
The present trade picture is as follows:-
But the plans are as follows:-
The two countries signed 18 agreements including the free trade pact which they hope will boost trade from $4.26 billion last year to $15 billion within five years. Separately Chinese companies struck deals worth $3 billion.
http://news.yahoo.com/s/nm/20061124/wl_nm/pakistan_china_dc_4
Re: China and Pakistan set to sign free-trade pact
I dont have a very good feeling about this. Pakistan is no bustling economy, it simply cannot cope with relaxed trade with China.
Re: China and Pakistan set to sign free-trade pact
China to increase imports from Pakistan
China said Friday that it has a battery of plans to increase imports from Pakistan now that the two countries have signed an agreement on free trade area (FTA). China and Pakistan signed the deal earlier Friday in the presence of top leaders from both countries. The agreement is projected to triple current bilateral trade to 15 billion U.S. dollars within five years. Chinese Commerce Ministry Spokesman Chong Quan said here Friday that China has committed to helping Pakistan develop its exports and would do so as the China-Pakistan free trade area is built.
China has arranged tax rebates for high-volume Pakistani exports to China. It will also grant favorable status to Pakistani products with export potential, said Chong, such as stones and rocks, leather, textiles, drugs and chemical products. Chong said China would facilitate Pakistani companies’ participation in Chinese expos to showcase their products. According to the agreement due to take effect on July 1, 2007, China and Pakistan will reduce tariffs and remove non-tariff barriers to improve the trade environment. The agreement is the third of its kind reached between China and foreign countries after the China-ASEAN FTA on goods liberalization and the China-Chile FTA. China has begun talks on ten free trade areas, involving 27 countries and regions, according to the commerce ministry.