Question

Pakistan has signed Free Trade Agreement (FTA) and a five-year investment package with

• A. USA
• B. European Union
• C. China
• D. Russia

Hint:

Look for the trade partner that gave Pakistan a formally named FTA plus a specific five-year investment commitment, not just general trade ties.

Answer 1

The Correct Option is C

This question is about Pakistan's foreign trade policy in the mid-2000s, and the safest approach is to match each option against what is actually documented for that period.

1. USA: The US and Pakistan traded heavily, but there was no comprehensive Free Trade Agreement signed between them during this time.
2. European Union: The EU extended trade concessions to Pakistan through preferential tariff schemes, not through a formal bilateral FTA.
3. China: This is the correct answer. Pakistan and China signed an FTA in 2006 that took effect in 2007, and it came bundled with a five-year package of Chinese investment commitments, part of a broader pattern of deepening Pakistan-China economic cooperation.
4. Russia: Pakistan-Russia trade ties existed but stayed modest through this period, without any FTA of the scale described in the question.

China stands out clearly because the FTA with Pakistan was a specific, named agreement (unlike the looser preferential arrangements with the EU) and it explicitly included the five-year investment package mentioned in the question.

Let's summarize:

• Pakistan-China FTA was signed in 2006 and enforced from 2007.
• It came with a five-year investment package, distinguishing it from the general trade relationships Pakistan had with the USA, EU, and Russia.

So the correct partner country is China, option (C).