By Hamid Mahmood ISLAMABAD, April 04 (INP-WealthPK): Pakistan and China are anticipated to renegotiate the advantages under the second phase of the Free Trade Agreement (FTA), reports WealthPK. Pakistan has begun preparing a renegotiation agreement on the export of those commodities that China finds unappealing. Pakistan also seeks more special concessions for its exports, such as rice, and more market access to expand its share in bilateral trade. During Prime Minister Imran Khan's recent visit to China, officials from the Ministry of Commerce said Pakistan began negotiations with China to revise the conditions and tariff lines for the second phase of the FTA. It is envisaged that negotiations would be completed by the end of the fiscal year 2022-23 financial exercise. The signing of the second phase of the China Pakistan Free Trade Agreement (CPFTA) is a significant step forward in the two countries’ economic and commercial relations. Spanning 2019-2024, the CPFTA Phase-II came into effect in January 2020. Pakistani exports to China have grown over the past year, according to WealthPk analysis. Exports to China have surpassed $3 billion for the first time in a decade. Pakistan's exports to China totalled $3.59 billion in 2021, a whopping increase of 69%. Last year, trade between China and Pakistan reached $27.82 billion, a year-on-year increase of 59.1%. This figure indicates that the trade agreement's second phase has commenced, which will improve bilateral trade in terms of imports and exports making it simpler for the Pakistani businesses to develop their commercial presence in China. Under this new phase, Pakistani manufacturers and dealers would be permitted to export roughly 313 new goods to China duty-free. The significant increase in exports has created a market for Pakistani goods in China, reflecting their growing desirability. The rise in exports has contributed towards broadening Pakistan’s trading options and establishing a framework for maintaining trade balances with the world's second-largest economy. In an interview with WealthPK, Adnan Khan, a socio-economic development specialist, said growth in Pakistan's exports to China was a positive sign. Pakistan's long-standing friendly relations with China have become more pragmatic and fruitful over time. In the second phase of CPEC's Special Economic Zones (SEZs), the government has been working hard to boost exports to China by encouraging industrialization. He said the government provides specific incentives to businesses and works closely with the Chinese government and businesses to have a better knowledge of their needs. The second phase of CPEC focused on import substitution and export-oriented industrialization, according to Prime Minister's Advisor on Commerce and Industry Abdul Razak Dawood. Despite the fact that agriculture is the country's backbone, it largely relies on the import of food and primary products such as cotton. Dawood added that export growth could only sustain through production-led growth with a diverse industrial base and agricultural modernization. Pakistan has placed major emphasis on agricultural cooperation, vocational training, poverty alleviation, socio-economic development, and formation of industrial zones as the main beneficiaries of the BRI through the CPEC, which is worth billions of dollars. CPEC has given Pakistani businesses a significant chance to expand their trade with China by cutting the costs of land transportation. CPEC and the second phase of the trade agreement have collaborated to provide the basis for the region's two fastest-growing economic sectors to be integrated. This free trade agreement would also assist Pakistan to reduce its trade deficit and encourage more nations to join the growth cycle.