BEIJING, Aug 9: Pakistan and China are scheduled to hold the fourth round of negotiation on free trade agreement (FTA) in Beijing next month.

A senior official of the Chinese commerce ministry told APP that they were looking forward to expedite the negotiation process in order to complete it by the end of this year. The FTA will be a major step forward expanding the scope of import-export between the two countries.

The two sides are holding the talks, keeping in view the complementarity advantages in their industrial and trade structure, ensuring equal benefit and a `win-win’ situation.

Both the countries enjoy most favourable environment to conclude a mutually beneficial agreement because of their excellent diplomatic relationship,” sources said, adding that they are prepared to accommodate each other upholding their overall business interest.

The FTA was raised at a time when such trade arrangements are becoming increasingly popular and the two countries have stepped up their efforts to strengthen their economic ties. Pakistan pinned a great hope on the FTA, also for correcting its balance of trade position with China.

According to the Chinese ministry of commerce, the third round of China-Pakistan FTA negotiation made substantial progress in consultations on tariff reduction, and the two sides talked deeply about market access, trade relief and juristic issues in terms of goods trade and reached consensus on the draft text of agreement.

Both the sides were satisfied with the progress of the third round, which created favourable conditions for future trade agreements.

Zhu Hong, deputy director-general of department of international trade and economic affairs of the ministry of commerce of China, who led his team during the talks, expressed the hope that the two sides would finalise an acceptable arrangement, promoting mutually beneficial cooperative partnership.

Over the past few years, China-Pakistan economic and trade relations developed quickly. In 2005, bilateral trade reached $4.26 billion, up by 39 per cent over 2004. Trade between China and Pakistan amounted to $1.018 billion in January to March this year, up by 42.3 per cent over the same period last year.

By March 2006, contractual investment of China in Pakistan was $100 million and turnover of overseas projects was $6.9 billion. Pakistan invested $24.31 million in China in all.

The enhancement of bilateral ties reflects the political will of the two governments and also the aspiration of the two peoples, the sources said, adding that it serves the fundamental interests of the two sides and is conducive to peace and prosperity in the region. The two countries attach great importance to the FTA for translating their time-tested and evergreen relations into economic gains.—APP