export between the two friendly countries. The two sides are holding talks, keeping in view the complementarily 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, officials said, adding 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 great hope on FTA, also for correcting its balance of trade position with China. Over past few years, China-Pakistan economic and trade relations have developed quickly. In 2005, bilateral trade reached $4.26 billion, up by 39% as compared to 2004. Trade between China and Pakistan amounted to $1.018 billion in January to March this year, up by 42.3% as compared with the same period last year. By March 2006, contractual investment of China in Pakistan was $100 million, turnover of overseas projects was $6.9 billion.
