ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) has appreciated the understanding reached between Pakistan and China during third meeting of second phase negotiations on Pak-China Free Trade Agreement (FTA) to soften the requirements for establishing bank branches in each other’s country.
ICCI termed it highly positive development that would help in boosting bilateral trade and yield fruitful results for both countries.
Muzammil Hussain Sabri President ICCI said Pakistan and China possessed immense potential to improve bilateral trade, however, lack of banking facilities was a big stumbling block for Pakistani businessmen to promote trade with China as presently letter of credits (LCs) were routed through foreign banks.
Opening of Pakistani banks in China would greatly facilitate trade promotion with China, as the financial transactions would be routed through Pakistani banks. This arrangement would not only benefit our banking reserves, it would also help in expansion of our economy and gross Domestic Products growth.
He stressed both countries should remove all impediments on urgent basis to establish bank branches on reciprocal basis.
Muhammad Shakeel Munir senior Vice President Islamabad Chamber appreciated Pak-China move to re-negotiate tariff reduction on tradable goods under FTA.
India-China bilateral trade has reached $ 70 billion during 2013, but Pakistan’s trade with China was still far below the available potential.
He urged government should provide helping hand to its businessmen in taking full advantage of FTA for improving trade with China.
Pakistan-China bilateral trade has improved from $4.10 billion in 2006-07 to over $10 billion in 2014 however the volume of trade was highly tilted in favour of China, which needed to be made balanced for both countries.
