According to free trade agreement (FTA) with Beijing, it is expected that Islamabad will get tax-free access for 313 Pakistani products into the Chinese market from December. Razak Dawood, advisor to PM second phase of FTA will be operational by 1st December 2019.
He added, “After the agreement, all the major exports of the country especially value-added textile items would have better excess into the Chinese market”. The commerce advisor said this agreement will help Pakistan to compete with the South East Asian economies in the Chinese market. It will provide an opportunity for tariff relaxation to the manufacturers.
The garment sector will be enhanced the export rate with an increase of 20 percent. He told the “Government’s major economic agenda is to increase the country’s exports, which would strengthen the economy by overcoming trade and current deficits.”
China has provided Pakistan with an opportunity to export chemicals and engineering goods. The government wants to take export to the highest level through business-friendly policies.
The government is taking appropriate measures to enhance export by reclaiming traditional markets and getting access to the new markets. Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) with the collaboration of the International Apparel Federation (IAF) conducted a conference. In the conference, it was discussed that ‘Garments exports are on an upward trajectory during to additional market access secured by the current government.’
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The Commerce advisor said Chinese companies started construction in Lahore and Faisalabad to explore business in the textile sector. Different businesses have been located in different parts of the country. Lowering of exports of yarn and fabrics will provide an opportunity for the textile sector for value addition. In Pakistan, the World Fashion Convention will be integrated into the world economy and Foreign Direct Investment will be increased.