Beijing is expected to grant Pakistan greater access to its market following the visit of Prime Minister Imran Khan, which can result in more than double growth in Pakistan’s exports to China in three years, a senior official of the Ministry of Commerce told Gwadar Pro.
The official, who wished anonymity, said that Islamabad has requested Chinese authorities to increase its rice imports quota by 100,000 metric tons per annum.
This move, if granted, and other favourable measures by the Chinese government will shoot up Pakistan’s exports to China by more than $2 billion in one year and by up to $5 billion in three years, he said.
Moreover, the two sides have agreed to form a joint working group for the removal of ban on certain Pakistani food and agricultural items by the Chinese government, as well as other bottlenecks in the growth of Pakistani exports to China. Both sides are most likely to sign an MoU in this connection during the PM’s visit, he said. Pakistan’s total exports to China will go up to $7-8 by 2025, he said.
Pakistan’s exports to China have registered an upward trend ever since implementation of phase II of Free Trade Agreement between the two nations on January 1, 2020.
Food and agricultural products form major part of Pakistan’s exports to China. China has waived off import duties on over 300 items from Pakistan including meat.
However, the meat imports from Pakistan are presently banned due to existence of foot and mouth diseases (FMDs) in Pakistani livestock. To remove this hurdle, both the nations have agreed to establish a veterinary vaccines’ manufacturing facility in Pakistan.
The Veterinary Research Institute, Lahore has offered space and manpower for the purpose and Chinese officials have visited the proposed site as well. This initiative may also materialise during the PM’s visit as the Chinese officials had agreed in principle to the project during their visit, the official said.
Moreover, the official said that Chinese and Pakistani firms are also expected to form a joint venture for production of containers for shipment of trade goods. As the Covid-19 has resulted in slow clearance, the containers are stuck in sea ports, resulting in scarcity of the resource. Therefore, there is big demand for containers which we can cash in on, he said.
The official further said that Pakistan will also request Chinese authorities during bilateral trade negotiations to lessen duties on import of cement and clinker from Pakistan. This will result in a win-win situation for both nations and serve as a big boost for Pakistan’s exports to China, he said.
