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  • Nov 10th, 2005
  • Comments Off on Pakistan’s export to China registers 36 percent increase
Pakistan's export to China shows an upward trend, registering an increase of about 36 percent in the recent nine months. The export was amounted to around $612 million from January to September 2005, whereas it was $448 million in the corresponding period last year.

According to the Chinese Custom Authority, there was a considerable increase in the export items like cotton yarn, cotton fabric, leather, chromium ore, copper and chemical.

The Chinese side calculates the export figures on the basis of the origin of the exported items, including those come to the mainland through Hong Kong and the Chinese financial calendar is counted from January to December.

The sources told APP here on Wednesday that there was still a great room for enhancing the export, particularly of non-traditional items, including sports and engineering goods, handicrafts, furniture, surgical instruments, marble, onyx, jewellery and agro-based products.

Pakistan's export to China is likely to get further boost, when tariff on a number of trading items would be reduced to zero under the Early Harvest Programme (EHP), to be effective from January, 2006.

Commercial Counsellor in the Pakistan embassy Shahid Mahmood hoped that the trade volume would increase in the coming months, when the list of export's items to China would also include rice, mango and some other agro-based products.

He was confident that Pakistan's annual export to China would reach around $800 million by the end of December.

The bilateral co-operation on the government-to-government-level has been excellent over the years. A number of major public sector development projects have been undertaken in the country with the financial and technical assistance of the state-run Chinese companies.

An official of the Chinese Commerce Ministry suggested that maximum number of Pakistani businessmen should visit China to explore new openings in the trade sector.

The official explained that the WTO has reduced the government's role in developing foreign trade. Now, it will be up to the private sector to grab the opportunities, reinforcing business interaction on country-to-country level.

According to the economic experts, there were very favourable indications for the two countries to take their overall trade to around $8 to 10 billion by the end of 2008, when tariff on most of the items would be brought to zero under the EHP.

The leadership of the two countries agrees that the bilateral trade does not match their economic potential and the exemplary diplomatic ties. The two sides have now decided to lay greater thrust on the development of mutually beneficial economic partnership.

The Pakistan Embassy, in collaboration with the country's Export Promotion Bureau and the Chinese foreign trade promotion's organisations, held a number of business conferences, seminars and meetings during the last three years, providing venues to their entrepreneurs enhance their interaction and take benefit of the growing trade prospects in their respective countries.

According to the sources, Pakistan would be facing a major challenge to correct its balance of payment position, which is currently heavily in favour of China.

"It would need to rely upon the export of non-traditional and agro-based products, which could find a big market in a country, having a population of 1.3 billion.

Particularly, the export of Pakistani rice to China can be a breakthrough in trading food items. The Pakistani long-grain rice can attract a large number of buyers, since its quality is much better than the rice currently being imported from Thailand and Vietnam.

The sources said, Pakistan's joining of Shanghai Co-operation Organisation (SCO) has also opened new avenues of economic co-operation with China and Central Asia, especially through the land route.

China's Xinjiang Autonomous Region serves as most favourable location to develop economic ties. To regularise the business activities, Pakistan Trade House (PTH) has recently been established at Kashgar, near Pak-China border, initially with about 20 Pakistani companies.

Opening up of Pakistan's Consulate office in Shanghai early this year was a big step forward achieving the stipulated target. Launching of another PIA's twice-weekly flight from August last between Islamabad and Urumqi also helped to strengthen the trade links, the sources added.

Copyright Associated Press of Pakistan, 2005


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