Pakistan’s prime minister’s recent visit to China gave a momentous boost to the Pak-China economic cooperation which would lead the new era of bilateral trade between two friendly neighbours.
The visit resulted in the signing of memorandums of understanding (MoU) between Islamabad and Beijing which would reinvigorate the trade relationship between both the countries.
The Trade Development Authority of Pakistan (TDAP) envisaged outstanding trade opportunities due to this visit and established a dedicated ‘China focus cell’ at their headquarters to capitalise on possible future developments.
Exports to China reached $2.620 billion in 2012 from $436 million from in 2005. This increase was predominantly attributed to Pakistan’s engagement in the Free Trade Agreement (FTA) with China that came into effect in July 2007. The second phase of the FTA started this year.
Pakistan’s imports from China stood at $6.687 billion in 2012 indicating a hefty trade gap which requires a reduction.
The Chinese market attracts a number of Pakistani products especially textile products, leather, fresh fruits, sea food, cutlery, cement, ores, marble and handicrafts.
The development of the Kashgar-Gwadar Economic Corridor would be extremely helpful in bridging gap between Gwadar, Baltistan & Northwest China and bring tremendous trade opportunities in the region.
