Pakistan is preparing to request China to expand tariff-free access for around 700 product categories as part of the upcoming third phase of the China-Pakistan Free Trade Agreement (CPFTA).
Officials say the goal is to secure better trade terms similar to those already offered by China to ASEAN countries and several African nations.
A Pakistani delegation, including Commerce Minister Jam Kamal Khan and Commerce Secretary Jawad Paul, is currently in Beijing to discuss proposals with Chinese officials ahead of the planned visit of Prime Minister Shehbaz Sharif.
Pakistan hopes the new phase of the agreement will help reduce its large trade imbalance with China. At present, Pakistan imports far more from China than it exports.
Officials say Pakistan’s exports to China are around $2 billion per year, while imports are close to $20 billion, creating a significant gap in trade.
Over the past five years, China’s exports to Pakistan have exceeded $100 billion, while Pakistan’s exports to China have remained much lower.
The government believes the imbalance exists because Pakistan mainly exports raw materials, which are later imported again in processed form at higher value.
In the new negotiations, Pakistan is focusing on improving access for key sectors such as textiles, minerals, and meat products. Officials estimate that meat exports alone could grow to several billion dollars if market access improves.
Both countries have also already signed multiple agreements to address technical and safety requirements to make trade easier.
Pakistan is also requesting better border facilitation, including smoother movement of goods through the Khunjerab Pass.
In addition, officials want easier visa processes for exporters and stronger support for long-term purchase agreements from Chinese state companies.
The talks aim to make trade more balanced and help Pakistan increase its exports to the Chinese market under the next phase of the free trade agreement.