Pakistan, China eyeing $8bn trade by 2008

BEIJING, Oct 4: Pakistan and China enjoy bright prospects to take their bilateral trade volume to around $8 billion by the end of 2008, when tariff on most items would be reduced to zero under the Early Harvest Programme (EHP).

By 2008 we are confident to achieve this target, since the two countries registered a rapid growth in their trade interactions in the recent years, said a senior Pakistani official here on Tuesday while talking to APP.

According to Chinese Custom data, bilateral volume of trade is expected to touch $4 billion by the end of this year, since the growth rate, registered in seven months from January to August, 2005 was around 42 per cent, as compared to the corresponding period.

The increase in the trade was amounted to about $600 million during this period. “We are quite optimistic, expecting a big jump in trade volume taking it to $8 billion within next three years, since Pakistan starts exporting rice, mango, orange and some other food products to China from this year,” the official said.

The EHP, signed in Islamabad April this year, will be effective from January next, bringing zero per cent duty on more than 50 import-export items, already identified by the two countries. It is the part of the Free Trade Agreement, likely to be finalized soon. Second round of the negotiation to this effect is scheduled to take place in Islamabad next month.

The existing Preferential Trade Agreement (PTA) on which China and Pakistan had reduced tariff on margin of preference i.e. a percentage of the normal tariff, has also been extended. This list consists of 1,671 items on the Chinese side and 575 items in the list of Pakistan will become part of the EHP from January 1, 2006.

Leadership of the two countries recognized that their bilateral trade was nowhere near their potential and matched their exemplary diplomatic ties. They have now laid greater thrust on the development of mutually beneficial economic partnership.

Pakistan Embassy here in collaboration with Pakistan Export Bureau and Chinese foreign trade promotion organizations 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 balance of trade, which is currently heavily in favour of China. Pakistan would rely upon on the export of its agro-based products, which can easily find a big market in a country, having a population of 1.3 billion.

Particularly, the export of Pakistani rice to China is likely to be a breakthrough in trading food items. “The Pakistani long-grain rice can find a big market in China, since its quality is much better than the rice currently being imported from Thailand and Vietnam,” the official said.

China purchased about 400,000 tons Thai rice last year. The Chinese Commerce Ministry has planned to import more rice in coming months due to decline in production and stocks.—APP

Once gwader is set up and running the trade volume is going to rocket. China needs rice, wheat and fruit and pakistan has a abundance of these foods, if we can get the right technology we could then utilize our lands potential.

Secondly pakistan needs infracstructure development and i personally think theres no one better than China to do it. This could be another sector in which we could see a large increase in.

excellent if it happens. Pakistan should concentrate most of its energies trading with countries around it. Most of the UK's exports for example go either to the EU or to America. We have to reduce our dependency on the States and the EU as our major trade partners.

To be honest if we could take advantage of ASEAN have China invest in Pakistan then thats enough, this year in 2005 Thailand-China trade stood at $15 billion alone and this figure is going to triple by 2010 to over $50 billion. We have a booming country with 1.3 billion people next door we must take advantage of that, we miss this boat we miss out big time. The progress in China is helping the whole south east asia we need it to help us too.

To be honest if we could take advantage of ASEAN have China invest in Pakistan then thats enough, this year in 2005 Thailand-China trade stood at $15 billion alone and this figure is going to triple by 2010 to over $50 billion. We have a booming country with 1.3 billion people next door we must take advantage of that, we miss this boat we miss out big time. The progress in China is helping the whole south east asia we need it to help us too.

To be honest if we could take advantage of ASEAN have China invest in Pakistan then thats enough, this year in 2005 Thailand-China trade stood at $15 billion alone and this figure is going to triple by 2010 to over $50 billion. We have a booming country with 1.3 billion people next door we must take advantage of that, we miss this boat we miss out big time. The progress in China is helping the whole south east asia we need it to help us too.

Bhai, thats a great point, but not to such an extent that it merits being posted 3 times!

but the thing is: china can take all of it! If we export rice to china, they will buy it for sure. But price of rice in pak will increase! And this bad news for pak's poor!

there must be some control, that only overproduction can be exported etc. Otherwise you will not see any fruits or rice in pak soon!

Pakistani Mangoes are in HUGE demand the world over. China will be importing a lot. Here in the US we get Mangoes from Mexico....and they SUCK!!

it is a good point though! like I said, trade with those around you, its politically and economically safer. If Thai-China trade can grow to $50 billion, i am sure we could have a bilateral trade of half that. The principles apply to India as well. We should be trading with them as best we can.

sorry bro that was a problem i had with the internet was a mistake

I think Pakistan must concentrate on value addition in its exports and establish a strong manufacturing economy so we can export high value added items and earn big money than vegetables and fruits and cottons etc..

That's when we will earn the big bucks.

Pakistan should most definetely pursue further economic relations with China, this is an excellent way to avoid over-realiance on 'un-realiable' countries. China's interests in Pakistan are sincere as opposed to American which are negative and promote for the most part American interests, not Pakistani.

Long Live China!

Cool. What are Pakistan's current export levels?

Over 14 billion UDS with 17 - 20 % growth rate. It was only 4-5 billion few years ago. We have seen robust growth in our export.

Thats seriously a big achievement made by Pakistan.... from 5bil to 14 bil in just a couple of years is no joke.

Perhaps Pak is best served by disassociating itself from exploiters, and pursuing an eastward looking policy for growth.