China to Revisit Free Trade Agreement With Pakistan

China has agreed to revisit the existing Free Trade Agreement (FTA), give trade finance in yuans, and offer loans to help businesses relocate to Pakistan. The aim is to bring Pakistani products under the limelight, matching them with the existing agreement between China and ASEAN countries. The requests were made during Interim Commerce Minister Gohar Ejaz’s travel to China, where he is heading a delegation of 20 people. The minister said Pakistan will present a priority list following consultation with relevant stakeholders. Meanwhile, Pakistan has also asked the Chinese government for $5 billion in RMB to be allocated for developments aimed at enabling Chinese company relocation. The cash would be arranged on a “Pay As You Earn” basis, with payback made via export revenues. Moreover, only Special Economic Zones (SEZs) or Export Processing Zones (EPZs) in Pakistan would be relocated. Chinese investors will seek government investment capital and create revenue in US dollars through goods exports. These proceeds will be used to pay off the debt. If the proposed scheme is approved, the minister added that Pakistan’s foreign exchange reserves won’t be used. Later in a tweet, the minister said, “Pakistan is ready to move forward and embrace prosperity. I invite Chinese businesses to join us on this journey. Our top 20 companies are here to explore partnerships. Let’s unlock mutual benefits together!” He thanked Pakistan’s envoy to China for organizing his visit.