By Muskan Naveed ISLAMABAD, Feb 22 (INP-WealthPK): Bilateral relations between Pakistan and China have become, somewhat, an example for the rest of the world. The friendship between the two countries started off in 1950 as Pakistan was one of the first countries to recognise the People’s Republic of China. The China-Pakistan friendship is famously described as higher than the mountains, deeper than the oceans and sweeter than honey, aptly summing up the strong bond that both the countries share. Pakistan and China are also referred to as “Iron Brothers”, and throughout the years since 1950, they have been working jointly towards increasing the bilateral cooperation and relations. The current hallmark of the Sino-Pak relations is the China-Pakistan Economic Corridor (CPEC); however, in the 70 years of friendship there have been a lot of other agreements that act as a testament to this strong bond. Bilateral trade relations In terms of imports of Pakistan, China has the largest share as around 27% of the total imports are made from China. The country is also the second largest export market of Pakistan with a share of 22% in total exports. The trade relations continue to improve as the exports to China recorded an increase of 24% year-on-year during the fiscal year 2020-21 (Pakistan Bureau of Statistics). China-Pakistan Free Trade Agreement (CPFTA) The phase one of the China-Pakistan Free Trade Agreement (CPFTA) was signed in 2007 and concluded in 2012. Immediately afterwards, the negotiations for the second phase commenced in 2013 and an agreement was reached in 2019. The second phase is intended to conclude in 2024. The objective of the phase one was to reduce tariffs on 85% of product lines which resulted in an increase of 242% in the bilateral trade during the period. China became Pakistan’s primary supplier of organic chemicals, fertilisers, electronic equipment, staple fibers and footwear, while Pakistan mainly exported gums, resins and cotton to China. With the phase two, the two countries aim to push their bilateral trade volume to $15-20 billion. The second phase of CPFTA is designed to widen the market access for both countries in each other’s economies. Other features of this phase include a system of electronic data exchange, protected product lines as well as a balance of payment clause. Some of the other major trade agreements that have taken place between the two countries include the Preferential Trade Agreement in 2003 -- which was one of the earliest trade agreements between the two countries -- and the Early Harvest Programme in 2006, among others. Economic Cooperation There is a deeper economic integration between the two countries with many of China’s firms having a strong market presence in Pakistan. The economic cooperation has dated back to when the countries established strong bilateral ties. During the 90s, most of the agreements revolved around enhancing the cultural ties, educational exchanges and the likes. However, the Pak-China friendship touched new heights as a joint declaration on Directions of Bilateral Cooperation was signed by both sides in 2003. It was followed by the Treaty of Friendship, Cooperation and Good Neighbourly Relations in 2005. Afterwards, many similar agreements followed suit which cemented the strategic and cooperative partnership between Islamabad and Beijing. CPEC is also a testament to the strong ties that both the countries enjoy. The CPEC initiative was signed in 2015. It is a multi-billion-dollar agreement under China’s Belt and Road Initiative. Through this project, Pakistan will be well-connected with China and other Central Asian nations through a highway that spans from Kashgar, China to Khunjerab in Gilgit-Baltistan and as far as Gwadar in Balochistan. The Gwadar Deep-Sea Port, a hallmark of CPEC, is set to transform into an economic hub greatly benefiting not only the two countries but also the whole region.