China-Pakistan trade continued its upward trajectory in 2024, further solidifying China’s position as Pakistan’s largest trading partner. China’s exports to Pakistan surged from $16.67 billion in 2023 to $19.62 billion in 2024, marking a 17.7% increase. This sustained growth highlights the strengthening economic partnership between the two nations. With a robust trade volume and expanding cooperation.

This growth is attributed to strategic agreements such as the China-Pakistan Free Trade Agreement (CPFTA) and initiatives under the China-Pakistan Economic Corridor (CPEC), which have enhanced trade volumes, reduced barriers, and created new export opportunities for Pakistani businesses.

Free Trade Agreement (CPFTA)

The China-Pakistan Free Trade Agreement (CPFTA), the first FTA China signed with a South Asian country, was signed in November 2006 during President Hu Jintao’s visit to Pakistan and came into effect in July 2007.

Under the Phase-II, Pakistan has secured enhanced and deeper concessions on products of its export interests, revision of safeguards mechanism for protection of the domestic industry, inclusion of the balance of payment clause as a safety valve against balance of payments difficulties, and effective enforcement of the electronic data exchange.

The major features of the agreement in Phase-II inter-alia include:

Market Access: Under the Phase-II of CPFTA, both countries will liberalize 75% of tariff lines for each other in a period of 10 years by China and 15 years by Pakistan. China will immediately eliminate tariffs on 313 most priority tariff lines of Pakistan’s export interest. Overall, China has granted concessions to products which include textiles and garments, seafood, meat and other animal products, prepared foods, leather, chemicals, plastics, oil seeds, footwear as well as engineering goods including tractors, auto parts, home appliances, machineries, etc.

Downloads:

Ø Text of the Protocol

Ø Text of the Protocol (Chinese)

Ø Annex1-A, Section-I General notes for China

Ø Annex1-A, Section-II General notes for Pakistan

Ø Tariff elimination schedule china (PDF)

Ø Tariff elimination schedule china (Xlxs)

Ø Tariff elimination schedule of Pakistan (PDF)

Ø Tariff elimination schedule of Pakistan (Xlxs)

Ø List of 313 items

Agricultural & Food Trade: SPS Protocols & Market Expansion

China and Pakistan continue to strengthen agricultural and food trade cooperation under Sanitary and Phytosanitary (SPS) Protocols, creating new market opportunities. So far, 14 SPS protocols have been signed between the two countries. The details of these protocols are as follows:

The Mission is actively collaborating with the General Administration of Customs of China (GACC) and provincial customs authorities, such as Urumqi Customs, to enhance trade facilitation and expand Pakistan’s exports to China. Through these engagements, the Mission is working to streamline export procedures, ensure compliance with regulatory requirements, and explore new market opportunities. This ongoing cooperation reflects a commitment to strengthening bilateral trade relations, paving the way for greater access to the Chinese market for Pakistani products.

Download:

The procedures for exporting the agricultural products from Pakistan to China

Trade Disputes

The Embassy of Pakistan and its consulates are actively engaged in assisting Pakistani businesses in resolving trade disputes with their Chinese counterparts. Working closely with the China Council for the Promotion of International Trade (CCPIT), provincial trade authorities, and relevant dispute resolution bodies, the Embassy ensures that trade-related issues are addressed efficiently and fairly.

Through constant engagement with Chinese authorities, the Embassy works to resolve payment delays, contract disputes, and regulatory challenges faced by Pakistani businesses. Additionally, it provides guidance on compliance with Chinese trade laws, helping businesses navigate customs regulations, certification requirements, and other legal frameworks. These efforts strengthen confidence in bilateral trade relations and ensure a smooth, transparent, and stable trading environment.

The Mission continues to advocate for fair and transparent trade practices, encouraging both governments to enhance dispute resolution mechanisms and promote mutual trust in commercial dealings. By offering support and intervention when needed, the Embassy remains committed to fostering a dispute-free and business-friendly trade environment between Pakistan and China.

For trade dispute matters, please file your complete complaint along with supporting documents and send to commercial@pakbj.org