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

Step 1: Understanding the Question.
The question asks us to name the country with which Pakistan tied up a Free Trade Agreement along with a multi-year investment package, in the period leading up to the SNAP 2007 exam.

Step 2: Key Formula or Approach.
We need to recall Pakistan's major bilateral trade agreements active around 2006 to 2007, since FTAs of this scale are usually widely reported and remembered by their signing partner.

Step 3: Detailed Explanation.
Pakistan and China signed a Free Trade Agreement in 2006 that came into force in 2007, covering tariff reductions on a wide range of goods along with a five-year investment cooperation package, reflecting the two countries' close economic and strategic ties.
The USA has always been a major trading partner of Pakistan, but the two countries never signed a comprehensive FTA of this kind.
The European Union offered Pakistan preferential access under schemes like the Generalised System of Preferences (GSP), which is not the same as a formal FTA.
Russia's trade relationship with Pakistan in this period was comparatively limited and did not include an FTA of this scale.

Step 4: Final Answer.
The country that signed the FTA and five-year investment package with Pakistan was China, so option (C) is correct.