STRENGTHENING TRADE BETWEEN PAKISTAN AND CHINA; A CASE STUDY OF FREE TRADE AGREEMENT

Abstract

ABSTRACT The paper attempts to explore the potential benefits obtained by Pakistan and China, since they signed China-Pakistan free trade agreement (CPFTA) and the importance of bilateral trade in improving friendship between the two countries. There is a considerable increase in Pakistan’s imports from China and decrease in Pakistan’s exports to China since FTA is concluded. Despite major increase in imports from China, maximum profit had been achieved since it was signed .This also attempts to explore the impact of  China Pakistan Economic Corridor (CPEC)  signed under the FTA. CPEC is a multi-billion dollar project a part of One Belt One Road (OBOR)initiative initially, is carried out for the purpose of infrastructure development and the development of roads railways and gas pipelines to connect Gwadar port with Kashgar in China and facilitate trade. But there is still some negative impacts on Pakistan‘s economy after signing CPEC. The paper will also discuss the negative impacts of CPEC and will try to find the possible solutions to the problems. Key words: CPFTA, CPEC, Agreements, import, exports, trade, regional connectivity.