BEIJING – Bilateral trade of Pakistan and China has registered an overall growth of 28 percent, touching $8.7 billion in 2010 compared to a volume of $6.7 billion in 2009. Pakistan’s Ambassador to China Masood Khan, while welcoming the increase in trade volume, said that remarkable growth was seen in exports which increased by 37.44 percent; while imports from China also grew by 25 percent.
The Ambassador attributed growth in Pakistani exports to the enhanced market of cotton yarn and mineral products in China. “The trend seems to be pretty stable,” he noted. “Despite the encouraging growth pattern, we would not sit on our laurels. There is a long way to go as we have to achieve the $15 billion mark and move beyond it in the near future,” Masood Khan said.
Pakistan and China have resolved to increase their trade to $15 billion in the shortest possible time. The recent trend of growth in Pakistan-China bilateral trade has put the two countries on a fast track to achieve this target. The biggest spurt in Pakistani exports to China has been cotton yarn, home textiles, garments, ores and mineral products, copper and copper scrap, leather goods, fish products, electrical goods and surgical instruments.
The Pakistan-China Free Trade Commission (FTC) was held in November last year for the sole purpose of stimulating and promoting Chinese investment in Pakistan. Furthermore, Wen Jiabao’s visit to Pakistan last month was quite productive as decision to launch the second phase negotiations of Pak-China FTAs was taken. The objective of the talks was to boost trade liberalisation and promote economic growth.
Pakistan has requested China for unilateral tariff concessions for 268 of its product lines. If these concessions are agreed, Pakistani exports to China will increase even more rapidly. Pakistan exports cotton yarn, synthetic yarn, garments, home textiles, chromium and other ores, fish and fish products, vegetable and animal products, marble, granite and stone products, medical instruments, sports goods, carpets etc to China.
Pakistan imports, polyester and silk fabrics, polyester staple fabrics, fertilisers, mobile communication equipment, gas turbines, motorcycle parts, combustion piston engines, electrical appliances, iron and steel products, and various other forms of machinery. Premier Wen Jiabao and Prime Minister Syed Yusuf Raza Gilani, in recent meetings, had agreed to take a series of measures to improve the balance of trade in Pakistan’s favour.
The two heads are looking to encourage frequent visits of Chinese purchase missions to Pakistan. Both countries have also decided to hold seminars to enhance visa facilitation. Pakistan has proposed development of an efficient Electronic Data Interchange (EDI) to China in order to realise the full potential of FTAs.
