Pakistan and China are likely to make a major headway in promoting their economic ties during Premier Wen Jiabao's visit to Islamabad early April. The two sides are expected to sign some new documents, giving boost to their bilateral co-operation in the economic sector, said an official of the Chinese Commerce Ministry here on Thursday, while talking to APP. China attaches great importance to its all-round partnership with Pakistan, and wishes to make the Premier's visit more productive promoting mutually beneficial economic co-operation in all sectors of common interest.
According to the sources, the two sides would hold formal negotiations on the establishment of Free Trade Area (FTA), when Wen Jiabao visits Islamabad.
The two countries have already agreed on a summary regarding the FTA, which comprises items that would get duty facilitation ahead of the FTA.
The study would be completed by the end of this month and the negotiations for the FTA would be commenced, the sources said adding, by the completion of the study an Early Harvest Programme would also be put in place to be implemented by the end of the year.
China, now the world's third largest trading nation, is actively pursuing the FTA negotiations with some other countries as well.
Pakistan and China want finalisation of an early harvest programme to finally sign a Free Trade Agreement (FTA) between the two countries, said a Pakistani official.
Two sides are actively pursuing various options, including a list of items to be traded zero-rated duty under the Early Harvest Programme, promotion of bilateral trade in border areas, expanded investment co-operation and facilitating export of Pakistani rice, fruits and vegetables to China.
Pakistan hopes it would succeed in expanding its economic ties with China further when Chinese Premier visits. Signing of the FTA and attracting Chinese investment in major infrastructure projects, like Thar Coal, expansion of Gwadar port could be part of the agenda.
Two sides have very close co-operation in the field of defence, including an extensive defence production programme.
Yi Xiaozhun, Assistant Commerce Minister of China, discussed ways to expand the trade with Pakistani side during his recent visit to Pakistan. The two sides discussed deepening and broadening of existing Preferential Trade Agreement (PTA), the Early Harvest Programme and the Free Trade Agreement (FTA).
Other items in the existing and extended PTA will also be added to the Early Harvest Package, an official statement of the Ministry of Commerce said.
The Early Harvest Programme would serve as foundation stone towards conclusion of the Free Trade Agreement. China also seeks Pakistan's support on accession to the WTO.
Pakistan also sought Chinese investment in agriculture, food processing, livestock, fisheries, dairy farming, housing, IT, telecom, construction and engineering and packaging industries, and investment in export-oriented industries especially in manufacturing of fabrics and garments.
China is also expected to sign a formal protocol in April this year, paving the way for export of Pakistani rice to China. The export of Pakistani rice to China is likely to be a breakthrough in trading food items between the two countries.