Islamabad: In a significant move to enhance bilateral trade and economic relations, the China Asia Economic Development Association (CAEDA) has proposed the establishment of a “Pakistan Zero-Tariff Trade Zone.” This initiative aims to set up a service center for Chinese imports and expand collaboration in agriculture, livestock, exports, and business-to-business (B2B) investments.

According to Zameen.Com, during a meeting in Islamabad on Thursday with Planning, Development, and Special Initiatives Minister Ahsan Iqbal, a CAEDA delegation led by Qian Qiu Zhu and Jian Jun Guo outlined the vision for economic cooperation. The proposed trade zone would focus on eliminating tariffs to facilitate easier access for Chinese imports, while also tapping into Pakistan’s agricultural and investment potential.

Minister Iqbal highlighted the ongoing second phase of the China-Pakistan Economic Corridor (CPEC), emphasizing its role in fostering B2B partnerships and attracting Chinese industries to Pakistan. He noted the lower labor and production costs in Pakistan as a significant advantage for Chinese businesses looking to relocate and produce goods for international markets.

Furthermore, Iqbal discussed the potential in Pakistan’s agricultural sector, particularly in regions like Gilgit-Baltistan, where cherries and other products have a high export potential to China. He also underscored the opportunities across various sectors including minerals, fisheries, agriculture, and textiles, which are ripe for Chinese collaboration.

On the topic of Special Economic Zones (SEZs), Iqbal stressed the investment opportunities available for Chinese businesses and the importance of establishing a service center to enhance cooperation between enterprises from both countries. He concluded by pointing to Pakistan’s long-term Economic Transformation Plan, which aims to boost foreign investment and exports to tackle economic challenges, particularly in the export sector.