Two Decades of China-Pakistan Trade Relations

Over the past two decades (2005 to 2025), China and Pakistan have strengthened their economic partnership through a series of trade and investment agreements, most notably the China-Pakistan Free Trade Agreement (CPFTA) signed in 2006 and the China-Pakistan Economic Corridor (CPEC) launched in 2015. China's Belt and Road Initiative aimed to improve trade between two countries, encourage cooperation between industries, and make it easier for people to get around in the region. Even after all of this work, Pakistan's trade balance with China has not improved much. Exports have not kept up with the fast expansion of imports. From 2012 to 2016, Pakistan's yearly exports to China fell by about 12%. This showed that its export base and policy implementation were not strong enough. This report analyses China-Pakistan trade relations from 2005 to 2025, emphasising trade trends, tariff frameworks, and the efficacy of policy initiatives implemented under the CPFTA. It evaluates the degree to which these policies have facilitated economic growth, diversification, and sustainable trading practices. Furthermore, the research provides policy recommendations for strengthening Pakistan?s export competitiveness and ensuring more balanced, mutually beneficial trade outcomes in future negotiations, The results are meant to help policymakers get Pakistan more involved in regional trade agreements and make long-term economic cooperation with China better.