http://www.dawn.com/2006/07/08/ebr14.htm

Exports to China up by 27pc in five months




BEIJING, July 7: Pakistan's exports to China registered 27 per cent growth in the first five months of this year, making considerable headway in overall economic interaction between the two countries, according to the Chinese Customs authorities.


Exports to China between January and May 2006 amounted to $381.25 million compared to $299.7 million in the corresponding period last year. Hence, the increase in Pakistan's exports to China in five months was about $82 million.

The sources told APP here on Friday that there was a considerable jump in export of items like cotton yarn, cotton fabrics, leather and seafood.

The Early Harvest Programme (EHP) signed by the two countries last year will also gradually contribute to this upward trend, said Commercial Counsellor Shahid Mahmood in Pakistan Embassy here.

The EHP is a mini-fast track trade programme and a prelude to the Free Trade Agreement (FTA), expected to be signed between the two sides by the end of this year. Both Pakistan and China had increased duty free market access for each other on items of significant commercial interest from January this year.

Apart from this, a number of products can be traded by both counties at margin of preference on MFN’s duty rate. In this way they enjoy concessionary duty rate export of same products from other countries.

When asked to comment on the future prospects of Pakistan's trade with China, Shahid Mahmood said,” We are confident that the strong growth that we had in our exports to China last year would continue in the coming months.”

Pakistan's export to China is likely to cross the $1 billion mark by the end of this year. The Chinese customs authorities had reported $832 million Pakistan's exports to China during the year 2005.

According to the sources, there is a great potential for enhancing exports, particularly of valued-added textile products including cotton fabrics, home textiles and towels.—APP

that is a good news. hope pakistani people can make more money, so that their lifes can get better and better.

http://www.nation.com.pk/daily/july-2006/8/bnews3.php


Export to China registers $381m growth in five months

BEIJING (APP) - Pakistan’s export to China registered 27 per cent growth in the first five months this year, making considerable headway in overall economic interaction between the two countries, according to the Chinese Customs Authorities.

The country’s export to China between January and May 2006 was amounted to $381.25 million. It was $299.7 million in the corresponding period last year. Hence, the increase in Pakistan’s exports to China in a period of five months was about $82 million.

The sources told the agency here Friday that there was a considerable jump in the export items like cotton yarn, cotton fabric, leather and seafood.

The Early Harvest Programme signed by the two countries last year will also gradually contribute to this upward trend, said Commercial Counsellor in Pakistan Embassy Shahid Mahmood.

The EHP is a mini-fast track and a prelude to the under-negotiation Free Trade Agreement, expected to be signed by the end of this year. Both Pakistan and China have increased market access for each other on items of significant commercial interests from January this year. It has provided duty free access to a large number of import-export products.

Apart from this, a number of products are exportable by both counties at Margin of Preference in relation to MFN duty rate.

In this way they enjoy concessionary duty rate in comparison to exports of same products from other countries. When asked to comment on the future prospects of Pakistan’s trade with China, Shahid Mahmood said, We are confident that the strong growth that we had in our exports to China last year would continue in the coming months.

Pakistan’s export to China is likely to cross the $ One billion mark by the end of this year. The Chinese customs authorities had reported $ 832 million Pakistan’s exports to China during the year 2005.

According to the sources, there is a great potential for enhancing the exports, particularly of valued-added textile products including cotton fabric, home textiles and towels. Chinese growing market also provides wide opportunities to Pakistani traders to enhance their export in non-traditional items like sports and engineering goods, handicrafts, marble, onyx, jewellery and agro-based products.

The trade volume will get a quantum jump in the coming months, when the list of export’s items to China will also include sports goods, surgical instruments, rice, mango and some other agro-based products.

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. Major exporters need to set up here their representative offices to introduce their products and find prospective buyers, he added.

The Chinese companies, he added enjoy official support at the government level to enhance economic interaction with their Pakistani counterparts.

“We welcome the Pakistani side to display their products at the annual trade fairs, used to take place in Chinese major cities,” he added.

good news!

This is just initial result under the EHP; imagine what could be the potential exports, both in monetary terms and volume if thers is a FTA between China and Pakistan.

FTA between China and Pakistan can kill pakistan's small scale industry due to cheap imports from china. What kind of goods are exported to china. I bet it is raw materials mostly.

nitin

No sir, infect it has helped us in a way. Our local industry had imported lots of technology and chinese are transfering lot of tech and building up plants in pakistan as well which provide jobs to Pakistanis. This is what the true friend. Unlike some one in east dreaming to monipulate all its nieghbour by trade, plots, threats, deciete, propaganda and on and on.

Pakistan’s exports composition has changed significantly since 1990’s. The major changes encompass sharp decline in the shares of primary and semi-manufactured exports whereas, increase in the share of
Manufactured Goods.

Composition of Exports (% Share)

1990-91
19% (Primary Commodities)
24% (Semi-Manufactures)
57% Manufactured Goods


1992-93
15% (Primary Commodities)
21% (Semi-Manufactures)
64% Manufactured Goods


1994-95
11% (Primary Commodities)
25% (Semi-Manufactures)
64% Manufactured Goods


1996-97
11% (Primary Commodities)
21% (Semi-Manufactures)
68% Manufactured Goods


1998-99
12% (Primary Commodities)
18% (Semi-Manufactures)
70% Manufactured Goods


99-2000
12% (Primary Commodities)
15% (Semi-Manufactures)
73% Manufactured Goods


2000-01
13% (Primary Commodities)
15% (Semi-Manufactures)
72% Manufactured Goods


2001-02
11% (Primary Commodities)
14% (Semi-Manufactures)
75% Manufactured Goods


2002-03
11% (Primary Commodities)
11% (Semi-Manufactures)
78% Manufactured Goods

2003-04
10% (Primary Commodities)
12% (Semi-Manufactures)
78% Manufactured Goods

2004-05
11% (Primary Commodities)
10% (Semi-Manufactures)
79% Manufactured Goods

July-March
2004-05
11% (Primary Commodities)
10% (Semi-Manufactures)
79% Manufactured Goods

2005-06
11% (Primary Commodities)
11% (Semi-Manufactures)
78% Manufactured Goods

* Provisional Source: Federal Bureau of Statistics - Pakistan

This is one pros of FTA. It encourages FDI b/w both countries. But have u considered the possibility that instead of now inversting in pakistan, companies can invest in china and ship there products to pakistan (without duty). Example case is india-taiwan FTA. All japenese companies are using taiwan now to sell products in india instead of directly investing in india. Because they already have established base in taiwan.

I was talkin about small-scale industries not the large-scale one which involve tech transfer. Example case is india where toys made in china vanished toy industry in india. Building toys is small scale industry and it does not requires super tech to build a toy.

The points I have pointed may not be specific to china-pakistan but in case of china it has noteriety in cheap exports.

nitin


P.S. Better be safe than sorry.

This is what I hoped for we are living the dream, go Pak-China.

In usually all FTAs Pakistan is signing, they include a whole array of products in different categories of duty which is to be phased away in a certain period of time. But mostly both countries, in the beginning, will include those products that are not produced enough locally and has a lot of demand. In Pakistan's we can get alot of Chinese equipment that is not made in Pakistan and our companies are spending two or three times to buy from Europe, US, Japan or Korea.

Sameway, China has a huge appetite for just about everything and Pakistan can provide them with not only home grown stuff but also from other countries through Pakistan. Chinese could get much of raw materials, fruits, vegetables, and some manufactured goods.

Ofcourse, with free trade, many small businesses will feel the pinch. But the bright prospects are more encouraging than the dark side. China and Pakistan are aligning together to be partners in trade and not competitors. A good example is co-operation in textile and manufacturing area where the GOP is offering to setup special China specific industrial and trade zones where Pak-China jointventures will be setup to mutually take advantage of the free world trade.

Similarly, the same joint ventures will also setup facilities to manufacture products in Pakistan and ship to China to reduce labor as well as transportation costs. And with the oil and gas pipeline network going through Pakistan to China, it would bring parity in Pak-China trade.

But overall, it'll benefit both countries as it'll pool resources from both and work in a partnership. I do agree that in India and China case, the game is a little different as both are competitors in quite a bit areas, besides the fact that India has a large population to take care of if China hits local Indian industries.