The CPEC refers to the Sino-Pakistan Economic Corridor, part of China`s Belt and Road initiative, an ambitious project linking Asia to Africa and Europe through land and sea networks to promote trade and stimulate economic growth. Given that agriculture is the vital artery of Pakistan`s economy, local observers believe that duty-free access to the Chinese market will not only increase the income from export-oriented exports, but will also encourage local farmers to acquire modern methods to increase production. Tufail said they were in talks with industrialists who will travel to China to better understand the market and develop their products accordingly, adding that the country`s agricultural sector already had access to the world`s largest food market and that the industrial sector would also be booming under the free trade agreement. In the 2017-18 fiscal year, the volume of trade between China and Pakistan amounted to $13.2 billion, or 16.4% of Pakistan`s trade volume. Pakistan`s Prime Minister`s Adviser on Trade and Textiles, Abdul Razak Dawood, also recently said that a list of 313 items would be included in the free trade agreement, including agricultural raw materials, textiles, leather and other large products. v. Electronic data exchange: In order to avoid misrepresentation and imputation of imports from China, an electronic data exchange system for trade was set up as part of the Adnan Khan Free Trade Agreement, a scientific collaborator of the CPEC Center of Excellence (COE), an Islamabad-based think tank under the Pakistan Ministry of Planning. , development and reform, said that China has given Pakistan an opportunity to maintain a trade balance with Pakistan. While there is still a long way to go for Pakistan, the recently signed free trade agreement has launched the process, Khan said.
During the Prime Minister`s visit to Beijing on April 28, 2019, Pakistan and China signed a protocol on Phase II of the CPFTA. In accordance with Article 79, paragraph 2, the Amendment Protocol will be an integral part of the Free Trade Agreement between China and Pakistan. On December 1, 2019, the protocol amending the China-Pakistan Free Trade Agreement came into force, which profoundly revised the China-Pakistan Free Trade Agreement (CPFTA), first signed in November 2006. (The full text of the minutes is available here in English and here in Chinese). The sectors that benefit from the protected list are: textiles and clothing, iron and steel, cars, electrical appliances, agriculture, chemicals, plastics, rubber, paper and cardboard, ceramics, glass and glassware, surgical instruments, shoes, leather, wood, stones and plasters and various goods.