China and Pakistan became major merchandising spouses globally. Pakistan ‘s major import from China includes telecommunication equipment, industries machinery, conveyance equipment, fabric narration, cloths, Machinery and manufactured merchandises. Plastic and gum elastic are of import export from China.


Signing FTA ( free trade understanding ) b/w the states over the above trade goods of goods and services helped in duty decreases and heighten the trade b/w the countries.FTA held two parts: stage 1 and phase 2 of the elimination/reduction of duties.

The FTA therefore provides important chances to Pakistani investors to import natural stuffs and machinery and equipment at lower responsibilities from China and export the finished goods to the spread outing market of China.

Free trade understanding promotes more import and export between Pakistan and China. The sign language of the free trade understanding will further heighten the economic degree and trade as strategic spouse between Pakistan and China.


China made an understanding between with Pakistan that it is traveling to cut down duties on all goods. First they said that there must be 85 % cut down in duties from the both sides on the footing of taking attention of the concerns of both the sides. Pakistan will cut down these duties on mouton, beef and fabrication merchandises. China will chiefly cut down duties on mineral merchandises, veggies and farm animal etc.

Pakistan ‘s chief national trading policy tool is its imposts duty. Asiatic state began to liberalise its duties in early 1990 ‘s so as to absorb its economic system with the remainder of the universe. The liberalisation was hastened in 1997 ; nevertheless it had been still a stop-and-go attack. Till 2001, some eighty six import trading plans were obliged.

Presently over 70 fifth of Pakistan ‘s exports originate from four things i.e. , cotton, rice, carnal tegument and athleticss merchandise and over half its exports visit seven states. Therefore, it ‘s to diversify its merchandise vary and its export finishs. Asiatic state presently should give a level-playing field to its alternate exports. Asiatic state presently should give a level-playing field to its alternate exports and it ‘s divided into these classs:

1. Electronic and electrical merchandise.

2. Fabrics and effortful ware significantly vesture.

3. Finished ware from Industries that need high analysis and development.

4. Primary Commodities every bit good as silk, non-alcoholic drinks and cereals.

Pakistan ‘s general national trading policy aims stay to scale back protection, convey place the bacon an extra outward-oriented trade government, larger universe integrating and addition market entree for exports, and. It pursues these ends through one-sided, triangular, and, increasingly, regional or bilateral enterprises. Trade and investing relief is seen as contributory to economic authority, aggressiveness, and export-led growing ; this is frequently a cardinal authorities precedence that has antediluvian ( fabrics and vesture ) and non-traditional ware. Government acknowledges the inefficiencies of import permutation, and aims to recognize an extra broad trade government, to step by measure expose manufacturers to larger international competition ; offer uninterrupted stuff provides, and to ease machinery imports.


Pakistan import leather and leather merchandises from China from last many old ages. We import footwear, leather garments, leather bags, other leather goods and some finished leather. Some states enjoy duties grants Pakistan is in this class and enjoys tariff grant including zero duties on assorted leather merchandises. Pakistan and China signed Free Trade Agreement in 2007 and it has created tremendous chances for Pakistan bargainers. After this understanding of free trade has opened many chances for Pakistan to increase its leather and leather related exports of China. There are three major classs of leather exports of Pakistan to China:

1 ) Finished and semi finished leather

2 ) Articles of leather

3 ) Footwear

At present finished and semi finished leather exports occupies forth place on the list of major exports of Pakistan to China in 2010. Pakistan may besides work on farther increasing portion of its exports of finished and semi finished leather to China as it does hold possible to make that. Pakistan has strong supply side of these merchandises besides discriminatory duty advantage Pakistani goods bask under Pak-China FTA. A expression at China Customs Duty 2011 for Pakistan clearly reveals that articles of leather dress, belts etc attract zero duty whereas leather bags/ suitcases/ manus bags and other articles of leather enjoy duty grant between 20 to 40 % or even more. Pakistan has significant duty grant up to 50 % under Pak-China FTA on import footwear/parts in China. Footwear companies of Pakistan should concentrate on these merchandises every bit good as its market portion.

China leather industry is universe foreman. Given this tremendous size of Chinese leather industry and its volume of imports and the fact that China ‘s processing trade on big graduated table in leather goods including places every bit good as different merchandises of leather we need to recognize the importance of this market. Although it is really hard to vie with China in its ain place market yet Pakistan may do attempts to happen a niche in the Chinese market of leather goods particularly finished and semi finished leather, footwear, leather garments and leather bags. Pakistan ‘s exports to China are concentrated in finished/semi-finished leather due to natural advantage of rich resources. Whereas other sections of leather merchandises are unnoticed as far as Chinese leather market is concerned. There is some betterment in export of leather garments from Pakistan to China in recent old ages although non impressive as compared to European market but public presentation of footwear industry is blue for all markets specially China which has been worsening for other markets as good since last few old ages.


Analyzing the power of natural resources of Pakistan and Japan, it can be said that Japan is an industrialised state deficient in natural resources and natural stuffs which relies to a great extent on its value added exports to pay for these imports. On the other manus, Pakistan is a developing state which is deficient in engineering and endowed with natural resources of fertile agricultural land and natural stuffs. Therefore, Pakistan and Japan could profit a batch with common cooperation in countries like energy, excavation, agribusiness, trade and investing.

Pakistan-Japan dealingss are multidimensional in nature and character and have grown quickly over the old ages in different Fieldss and diverse sectors. As our major trading spouse and top provider of goods, Japan has over the old ages played a really important function in the economic development of the state.


Pakistan ‘s chief points of export to Japan are textile yarn & A ; woven cloths, leather and leather industries, athletics goods, fish and fish merchandises.


The chief points of imports from Japan are route vehicles, boilers, machinery and equipment, Fe & A ; steel, telecommunication and organic chemicals.

Trade Restriction:

Japan has imposed healthful steps to Pakistani merchandises due to standard steps. At present, 40 Nipponese companies are runing in Pakistan ; among them are Suzuki, Toyota, Honda and Hino and hoped that in future more companies will follow them. As there free trade system in Japan, there is tough competition. The Nipponese authorities exercised rigorous control over foreign trade and exchange traffics in order to protect Nipponese makers from competition in their place markets, and to beef up their capacity to sell abroad. Although Japan ‘s quantitative limitations are comparatively few, but still remain high in agribusiness. The protection to the agribusiness sector is provided by agencies of import limitations and monolithic proviso of direct and indirect subsidies. The infliction of these barriers is likely the largest individual factor to negatively impact the market chances of Pakistan, as Pakistan is fundamentally an agricultural state with a possible to export the agricultural merchandises to Japan.

Japan is following import limitation policies for the fabric merchandises but these limitations do non cover all fabric merchandises. The limitations are in the signifiers of quota and responsibilities on peculiar merchandises and peculiar exportation states. The worsening tendency of Pakistani imports from Japan may be due to the joint ventures between Pakistan and Japan in the car sector which has been discouraged by the Pakistani authorities to develop domestic car industry and conserve the foreign exchange militias.

Although Japan is decreasing its import policies but still the agribusiness sector is to a great extent protected by agencies of import limitations. These barriers are negatively impacting the market chances of Pakistan as Pakistan is an agricultural state with a possible to export the agricultural merchandises to Japan.


The bulky accumulated sum of Japan loans has steadily increased the liability of debt service payments which are expected to increase boulder clay to the twelvemonth 1997-98 after that the principal and involvement both declined because of debt rescheduling.


The net incomes of Pakistani subjects, which they earned in Japan and sent it to Pakistan constitutes the worker ‘s remittal from Japan..

The one-year workers remittance diminutions annually because one-year workers remittal ( AWR ) was US $ 26.84 million in 1990-91 but declined to merely US $ 1.58 million in 1999-2000. The authorities of Pakistan must look into and watch whether this sum may come through Hundi concern, if it is true so authorities must supply installations to the peoples to lodge and take their money through bank. In this manner authorities can demo accurate AWR and take the money hazard of the Pakistani workers those are working in Japan.