BEIJING, Feb 4 (APP): Pakistan export to China increased by 25 per cent last year, but bilateral trade data for 2009 has both good and bad news.“Good news is that Pakistani exports increased by 25% to US $ 1.2 billion. The not-so-good news is that overall volume decreased (by - 4 % ) to US $ 6.7 billion”, said Ambassador of Pakistan to China Masood Khan here Thursday. Addressing the Pakistan-China Trade Promotion Seminar at Pakistan Embassy ambassador Khan further said that the balance of trade improved because of decline in Chinese exports by 8.9 %. This was of course because of the international financial crisis, but our overall bilateral trade according to the latest figures is picking momentum.
The seminar was largely attended among others by Director Development Research Center of the State Council Ms. Zhang Qi, Mr. Ouyang Cheng of Department of International Trade and Economic Affairs of Ministry of Commerce (MOFCOM), Mr. Zhao Jianying of China Council for Promotion of International Trade (CCPI) and Mr. Jamshed Iftikhar, Director General (East Asia Pacific), Ministry of Foreign Affairs.
“Your presence and interaction today, I am sure, will open new avenues for trade between our two countries”, Khan observed. He said that Pakistan has one of the most liberal trade and investment regimes in Asia. Ease of doing businesses is improving. All doors are open for our friends from China.
In 2009, our macroeconomic environment continued to improve and move towards stability, he said adding that in 2008-2009, we were hit hard by three crises: (a) high oil prices, (b) food shortages, and © international financial crisis.
He however maintained that “Pakistan has done well in the past year. We have averted an economic crisis. Despite huge expenditures on security, relief to the internally displaced persons from Swat, Malakand and South Waziristan, and reconstruction of the areas affected by the war on terrorism, our growth climbed back. It is expected to be 3% in 2010 and around 4 to 5 % in 2011”.
The agriculture sector has performed particularly well (4.7%) on account of good crops. The large manufacturing sector contracted but small and medium sized enterprises grew by 7.5%. Foreign remittances doubled to more than US $ 7 billion.
Ambassador Khan expressed the confidence that “By 2012 our economy is expected to fully regain its traction”. This year is also a special year for Pak-China trade. Shanghai Expo 2010 will provide a fresh stimulus for promotion of our trade. Pakistan Pavilion is located next to China’s Pavilion. At our Pavilion, we will capture not only the diversity of our national life under the sub-theme “Harmony in Diversity” but demonstrate our deep friendship with the government and people of China.
Shedding lights on bilateral relations, Khan pointed out that in the past one and half years, President Asif Ali Zardari visited China four times and Prime Minister Syed Yusuf Raza Gilani three times. He said that we are expecting high level visits from China this year. This depth and intensity of our relationship creates an ideal platform for our trade relations. If we compare the current trade figure of US $ 6.9 billion to the figure of US $ 1.8 billion in 2002, we have certainly done well. However, our target is to reach the figure of US $ 15 billion in the next 3 to 4 years.
This is possible because of a number of steps that the two governments have taken in the recent past.
First, the Chinese investment has increased manifold in Pakistan in key sectors including port development, roads, railway, mobile telephony, communication technology, hydro and thermal power, mining, electronics, and nuclear energy. This kind of investment generates investment related trade on both sides.
Second, Pakistan and China have signed free trade agreements covering goods, investment and services. These three agreements are facilitating integration of the economies of Pakistan and China for mutual benefit. These instruments will not only stimulate growth of trade but will promote joint ventures, create jobs and transfer technology.
“Under the FTA on Trade in Services which became operational on 10 October 2009, Pakistan is opening 102 sub-sectors of 11 major sectors and China is further opening its 28 sub-sectors of 6 major sectors” Khan told the participants.
Pakistan is relaxing its share-holding restrictions on Chinese investments in the sectors of construction, telecom, finance, health care, environmental protection, tourism, transportation, research and development, and IT education. Fifty six (56) sectors, including fives major sectors of distribution, education, environment, transportation, entertainment, and sports are being opened to the Chinese providers for the first time.
China is opening sectors including mining, environmental protection, health care, real estate, sports, computers, and marketing consultancy, among others.Third, Pakistan-China Free Trade Commission met on September 10 last year and decided to focus on:
- (a) Visa facilitation for business to business contacts and exchanges. It was mentioned that the issues regarding the visas for Pakistani businessmen would be addressed.
- (b) Dissemination of information for stakeholders in Pakistan and China through the print and electronic media as well through dedicated trade portals.
- (c) Establishment of a sub-committee on Trade in Goods and a committee on Trade in Services (under articles 11 and 20 of the respective FTAs.)
- (d) Further investment in the manufacturing sectors in Pakistan with
- buy-back arrangements.
- (e) Further discussion on bilateral Transit Trade Agreement.
- Pakistan will present a proposal in this regard.
Last year, our Commerce Minister, Makhdoom Amin Fahim, unveiled three year strategic trade policy framework, Ambassador Khan said adding “Under this framework, we are enhancing competitiveness of our products, particularly textiles and clothing, diversifying export markets and promoting trade in services”.
“We are specifically targeting the sectors of chemical products, pharmaceuticals, meat and meat products, mining, agro-based industry, light engineering, gems and jewelry, and export promotion services” Ambassador Khan noted.
In the Embassy, Khan said that we give special care to Chinese traders, businessmen and tourists who want to go to Pakistan for work and leisure. We ensure the fastest, the least expensive, and most hassle free visa issuance and delivery services.
Finally, referring to the security situation Ambassador Khan informed that security of Chinese enterprises and personnel is given top priority in Pakistan. To start with, the whole of Pakistan is hospitable to Chinese visitors. But to protect them from the evil designs of dark forces, we have made special arrangements for the security of our Chinese professionals.
“So please go to Pakistan with full confidence (and sense of security)” Ambassador Khan said.
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