Exports to China and Malaysia to touch $5b figure

ISLAMABAD (APP) - Exports from Pakistan to China under Free Trade Agreement (FTA) would reach to $3 billion in next three years, Head of World Trade Organisation (WTO) Cell, Trade Development Authority of Pakistan (TDAP), Mujeeb Ahmed Khan said here on Monday.
The Exports from Pakistan to Malaysia, which were just $ 84.2 million in 2006 are expected to touch the figure of $1.8 by 2015.
Mujeeb Khan was speaking at a day-long trade seminar to explore Pakistan’s export potential in China and Malaysia in the context of the Free Trade Agreement (FTA).
The seminar was organized by Trade Development Authority of Pakistan (TDAP) in collaboration with Foreign Trade Institute of Pakistan (FTIP) and Islamabad Chamber of Commerce and Industry (ICCI). Main objectives of the seminar were to disseminate information about the existing and indicative potential of export products to China and Malaysia besides highlighting the issues of the tariffs, non tariff barriers and the administrative procedures under the perspective FTAs.
Presenting statistics of Pak-China bilateral trade, Khan said that an encouraging growth of about 25 per cent per annum during the last four years had been witnessed.
However, the balance of trade remains in favour of China, which reached $3.23bn in 2006.
Mujeeb Khan said that China was the third largest import marked of worth US$791 billion, providing an excellent opportunity for export products. However, he lamented that Pakistan’s share in this whole import market was very nominal.
Giving analysis of top-20 products exported to China, he said that these items constitute 85 per cent of Pakistan’s total export to China, adding that cotton yarn has been identified as the single largest export item, which constituted 47 per cent share in the total exports from Pakistan to China.
He said that Pakistan was largest trade partner of China in cotton yarn, however, China has put one item of it (cotton not carder of comber) in the no concession list despite the fact that it was the biggest importer of this particular item in the world by importing it to the tune of $ 3 billion. He said that Pakistan and China were the world’s top exporter and importer of plain weave cotton fabrics and terry toweling respectively, however Pakistan’s share in Chinese imports in this commodity was just 1 per cent.
He said that Chinese imports of core products of cotton year, cotton cloth, cotton waste, cotton, not carder or combed, cotton carded or comber and others was about $10.3 billion and Pakistan’s share in it was just $36 million.
About Malaysian market, Mujeeb said that it was one of the potential import markets with $131.13 import capacity however, Pakistan’s share in this market was just 84 million in 2006 which is just 0.045 percent.
He said that Pakistan was the leading supplying country of the about 9 items in Malaysia which included textile products. These items constituted only $7.385 million, which is 12.5 per cent of the total imports form Pakistan to Malaysia.
The indicative potential of top-20 export items has been estimated at $414 million. It is expected that the concessions given under FTA will help tap the indicative potential with greater pace. The total indicative potential for Pakistan’s export products in Malaysian market has been estimated at $1.17bn against the present level of only $54 million.
It may be recalled that Pakistan signed bilateral FTA with China on November 24, 2006 which became effective from July 1,2007. Similarly FTA between Pakistan and Malaysia was signed on November 8, 2007.
Khan said that WTO cell has been organizing series of such seminars to get feedback from the stakeholders for formulating better trade policies to enhance country’s exports. Similar kind of seminar was held in Karachi in the last week of March.

http://www.nation.com.pk/daily/Apr-2008/15/bnews7.php

Who's policies are you going to thank for this?

Ishaq Dar?

Its absolutly shocking that a country right next door to us that has a trade volume of over $1.5 trillion we only have $3 billion trade with them and they are our best freinds. Utter nonsence! Pakistans trade is more than pathetic even Gambia does more business than us let alone Iran and Turkey and they dont even border China!

I think the main reason is transportation. Althought Pakistan and China share border line, but it far from Pakistan to China's economy center which lies eastern part of China.

Yes. China's economic centers are located far away from Pakistan (east China). However, the figures are likely to increase at a higher rate, considering the fact that Pak-China infrastructure (roads/railways/highways) are near completion or under construction, and also because China has started to develop the Western parts of the country (which is very close to Pakistan).