China-Pakistan FTA (CPFTA) Phase-II FAQs

1. China’s Offer to Pakistan:

Level of liberalization by China under Phase-I of CPFTA in terms of tariff lines and trade value.
In terms of tariff lines under Phase-I, China extended zero rates on 35.5% of tariff lines. China proffered moderate liberalization on on 42.5% of tariff lines with 5% tariff rate and 50% margin of preference on few tariff lines. China maintained a protected list of 22.0% tariff lines, with either 20% margin of preference or no concession.

In terms of value of Pakistan’s exports to China under Phase-I, 28.9% of Pakistan’s exports faced zero rate, 57.9% of Pakistan’s exports to China faced moderate concessions i.e. less than 5% liberalization on level and 13.2% of exports were under the Chinese protected list. Pakistan’s exports at the moderate track were adversely hit due to China’s further FTAs with ASEAN and other competitors.

In terms of Pakistan’s global exports 41.4% of Pakistan’s global exports were facing zero tariffs in China, whereas the remaining 59.6% of global exports were subject to tariffs.


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