SHANGHAI, July 14: Pakistan and China will establish a comprehensive tax-free trading system within next two to three years. “It is part of the on-going efforts transforming their excellent diplomatic relations into strong economic partnership,” this was stated by the Commerce Minister Humayun Akhtar Khan while addressing a seminar held here on Thursday at a local hotel.

The seminar, attended by over 200 Chinese entrepreneurs, was jointly organized by the Pakistan Consulate General and the Shanghai Foreign Economic Relations and Trade Commission. It was also addressed by the local Chinese business leaders Madam Jian Heping and Wang Lie and Pakistan ambassador Salman Bashir.

Humayun Akhtar spoke at length on the Sino-Pak future economic relations and said these would get a big boost under the Early Harvest Programme (EHP), a part of FTA, which would come into force from January 2006.

He also highlighted the prospects of joint ventures and investment opportunities in Pakistan for the Chinese businessmen. He urged the Chinese entrepreneurs to come forward taking advantage of the liberal business environment, being provided to them by the government of Pakistan.

He noted that Shanghai is emerging as a major financial and business centre of the world. Pakistan, he said had recently set up its consulate office in the city to take benefit of the rapid development.

Highlighting the importance of EHP, the minister said it secures market access of a number of mutually agreed items of the export interest, which would attract zero tariffs by January 1, 2008.

The items on which market access would be available in China include industrial alcohol, bed-linen, table linen, other home textiles, towels, cotton and blended fabrics, articles of marble, surgical goods, sports goods, cutlery, etc.

Pakistan has given market access to China on organic chemicals and machinery where tariff will be eliminated for most of the items in two years. Both sides will also simultaneously eliminate tariff on certain fruits and vegetables.

The ambit of the existing Preferential Trade Agreement (PTA) has also been considerably enlarged and made a part of the Early Harvest Programme.

He told the Chinese investors that Pakistan provided a transparent and liberal investment regime. Investment in infrastructure was being enhanced and initiatives like textile city and garments city were being actively pursued by the federal as well as provincial governments.

In the textile sector, abundant raw materials and skills were available in Pakistan and the investors from China had an opportunity to establish their garments industry there.

The bilateral EHP would provide opportunities for import of machinery from China to Pakistan at zero duty and the investors could get the benefits of foreign markets for export of products manufactured in Pakistan, he added.

Humayun Akhtar said the leadership of the two countries was trying their best to provide conducive policies that also aimed at overcoming trade deficit in their bilateral trade. It was now up to the private sector to interact and avail themselves of the opportunities.

Pakistan has all the potential to be China’s favorite destination for business and a gateway to markets in the Middle East and Central Asia, he added.

Earlier, the Minister met vice Mayor of Shanghai Zhou Yupeng and urged him to send a delegation of traders and businessmen to Pakistan to explore the areas of common interest.—APP