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Pakistan

The government of Pakistan is a keen pursuer of bilateral trade and investment agreements. It has a full FTA with Sri Lanka (2005), a PTA with Iran (2004) and Mauritius (2007), Early Harvest Schemes with China (2005) and Malaysia (2007), and is part of both ECOTA and SAFTA. It is in various stages of FTA talks, or preparations for talks, with Brunei, Indonesia, Jordan, Thailand, Malaysia, Morocco, Singapore, the Gulf Cooperation Council, Canada, Switzerland, Indonesia, Nepal, China, Turkey and Russia (among others). In July 2006, it signed a Framework Agreement on Trade with Mercosur.

Negotiations on a US-Pakistan bilateral investment treaty, as a step towards a US-Pakistan FTA, have been quite controversial and are unconcluded. After talks restarted in mid-2010, a draft US-Pakistan BIT was sent for approval to Pakistan’s Cabinet in April 2012. The Pakistani government has already signed almost 50 BITs with other countries. In 2011 Germany ratified a BIT with Pakistan.

On a wider scale, there is talk of possible Pakistani FTAs with Afghanistan, Algeria, the EU, Japan, Laos, Mexico, New Zealand, South Africa and Tunisia.

last update: May 2012
Photo: Asian Development Bank/CC BY-NC-ND 2.0


Pakistan agrees to new ISDS provisions, despite previous policy to terminate ISDS agreements
Pakistan’s previous policy, initiated in 2021, sought to terminate its bilateral investment treaties to avoid further ISDS cases by international investors.
Islamabad accepts Riyadh-Doha term to allow international arbitration incase of dispute
Pakistan has negotiated to include a graduated approach for settlement of investment disputes between the state and investors.
Inking of CEPA with UAE likely
Pakistan and United Arab Emirates (UAE) are likely to sign Comprehensive Economic Partnership Agreement (CEPA) on the lines of FTA with GCC countries.
SIFC accelerates implementation of bilateral investment treaty with Saudi Arabia, Qatar
In Pakistan, the Special Investment Facilitation Council gave directions to swiftly turn the Bilateral Investment Treaty with Saudi Arabia and Qatar into an economic reality.
Saudi Arabia assessing advancements in FTA to enhance trade with Pakistan: Commercial Attache
Saudi Commercial Attaché in Pakistan said the Kingdom’s officials were currently assessing advancements in the initial Free Trade Agreement.
China agrees to review Free Trade Agreement, boost yuan-based trade
The Chinese government has agreed to consider a request to amend the existing Free Trade Agreement, supply trade finance in yuans and provide loans to assist industry relocation to Pakistan.
Pakistan moves closer to signing landmark trade agreement with GCC
Pakistan and Saudi Arabia have reached a consensus on the investment modalities, paving the path for the ratification of a much-awaited free trade agreement with the Gulf Cooperation Council.
Dispute settlement mechanisms: BoI asked to show ‘flexibility’
These directions were issued after threadbare discussion with Saudi Arabia and Qatar which are insisting on the option of international arbitration in a template of Bilateral Investment Treaty.
Business leaders urge FTA to boost Pak-Kazakh trade
Pakistani business leaders are urging the initiation of negotiations for a Preferential Trade Agreement in the medium term, with an eventual FTA as part of the long-term strategy for Central Asian Republics.
KSA, Qatar: Issues over BIT template block huge investment
Pakistan is likely to scrap Bilateral Investment Treaty template, and allow renegotiating with Saudi Arabia and Qatar on new BIT template.

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  • Pakistan FTAs
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