ISLAMABAD, Dec 18: Pakistan and China have agreed to constitute joint study group (JSG) to work out measures in a period of six months for initiation of dialogue on signing a Free Trade Agreement (FTA).

An official source in the commerce ministry told Dawn on Saturday that the decision was a part of the protocol signed by Pakistan's prime minister with his Chinese counterpart during the recent visit to Beijing.

It was also agreed in the protocol, to extend tariff concessions to another 913 items under the Preferential Tariff Arrangement (PTA).

Under the existing arrangement, China gave tariff concessions on 893 items and Pakistan has given similar concessions to China on 188 items. But both sides agreed to deepen the concessions on 186 items covered under the existing PTA.

The officials said the protocol also include an Early Harvest Programme for immediate tariff elimination on the items of bilateral interest. This exercise will be completed within six months, he added.

Pakistan has invited the Chinese investors to make investment in Pakistan proposed textile and garment cities as they were assured maximum facilities.

The textile and garment cities would help the Chinese to export their products to the world market as there would be no quota restrictions from January 1, 2005 on textile and clothing products.

It was feared that the developed countries might restrict the entry of Chinese origin goods in their markets by imposing anti-dumping duties.