Journal of Contemporary Issues in Business and Government

Abstract

The Free Trade Agreements between Pakistan and China increased the trade prospects
between Pakistan China, resulting in an increased trade deficit in Pakistan with China. The
study is based onhow the FTAs impact exports in Pakistan. This paper's results suggest a
positive contribution of FTAs to Pakistan's exports in China's economy and the imports from
China. However, the increase in imports is much higher than the increase in exports after
Pakistan entered into subsequent FTAs with China. As a result, there is an increase in the
Pakistan trade deficit, and the growth prospects of Pakistan suffered. The constant
marketsuggests that,by focusing on products that enhance
Pakistan'scomparativeadvantage,improving infrastructure, efficient tariff line utilization, and
deep understanding of China's market, all are necessary for Pakistan to benefit from FTAs;
otherwise, their provision becomes counterproductive. It is concluded that Pakistan needs to
reduce the trade deficit with China as it negatively impacts its macroeconomic situation.
Exports enhanced by investing in innovative technologies andreduced importsthrough
production inland.