Pakistan should fully tap its trade potential with China

According to comments published by Pakistan’s “Express Forum” on July 20, China is currently Pakistan’s largest source of imports and the second largest export market for Pakistani products, with a share of 7%, second only to the United States’ 16.7%. The Chinese government has been encouraging the expansion of trade with Pakistan and hopes to import more goods from Pakistan. Pakistan is an important importer of cotton and rice to China, and China has a huge demand for Pakistani potatoes, mangoes, and citrus fruits. However, compared with Pakistan, China has a larger trade volume of agricultural products with countries such as India, Thailand, and Vietnam. Minerals and gemstones are another potential trade growth point, and Chinese importers have begun to pay attention to Pakistan’s gold and copper resources. Daoud, Commercial Advisor to the Prime Minister of Pakistan, said that Pakistan will do its best to increase trade with China. The second phase of the China-Pakistan Free Trade Agreement has come into effect on January 1, 2020, and will provide institutional convenience for Pakistani products to enter China, especially Pakistan’s key export products, such as textiles and sporting goods, will enjoy the zero-tariff export policy to China. In order to expand trade with China, Pakistan can take measures in the following areas: First, shift from exporting raw materials and simple manufactured goods to high value-added products, which can not only increase export revenue but also expand domestic employment. Second, Pakistan’s institutions in China should further study China’s needs, feed relevant demand information back to Pakistani export companies, help traders establish effective procurement and distribution networks, and strengthen communication and exchanges between the two countries’ trading companies. Third, the Pakistan Trade and Development Agency should increase the promotion of local Pakistani brands and help build internationally renowned brands. </p