Pakistan China Trade

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Pakistan aims for $1 billion trade with China via land routes, expanding economic cooperation​

June 11, 2023
dailytimes.com.pk

After successful transportation of seafood cargo container to Xinjiang Uyghur Autonomous Region through Karakoram highway, Pakistan will be targeting $1 billion of trade with China through land route in coming years, Commercial Counselor, Embassy of Pakistan, Ghulam Qadir said on Saturday. “It is very heartening that export of food items especially seafood from Pakistan to China has started through land route.
This is a big success and we want to build on it to increase our export,” he told APP in an interview.

“He informed that the Pakistani side is targeting that $ 1billion worth of trade should happen in the long-run through land route. “However, keeping in view the current situation, we hope that this year, we have millions of dollars export and trade from this route in coming fiscal year,”he added.

“While commenting on export of seafood from Pakistan to China through land route, a spokesperson of the Chinese foreign ministry welcomed quality agricultural products from Pakistan to enter its market and said that the Chinese side stands ready to continue to work with Pakistan to boost bilateral trade through land transportation.

“As all-weather strategic cooperative partners, China and Pakistan have engaged in close cooperation in trade and other fields,” he added. “Pakistan’s first-ever seafood cargo container has recently arrived in Kashgar city of Xinjiang Uygur Autonomous Region through Karakoram Highway.

This is the first time that seafood containers from Pakistan have been transported by road from Karachi to Kashgar city along the China-Pakistan Economic Corridor (CPEC), a flagship project of Belt and Road Initiative (BRI).

“We welcome quality agricultural products from Pakistan to enter China’s market and stand ready to continue to work with Pakistan to boost our trade through land transportation, achieve sustainable growth, bilateral trade and deliver more benefits to our two peoples,” the Chinese foreign ministry spokesperson added. Pakistan Ambassador to China, Moin ul Haque has also expressed satisfaction over the development and informed that the Pakistani and Chinese governments are making joint efforts to bring more Pakistani seafood and agriculture products through Karakoram Highway to the Chinese market.

“We are working together to bring more Pakistani seafood and agricultural products through this land route to the Chinese market,”he said. As the world’s second largest consumer market, China embraces more high-quality Pakistani products exported to China.

Ambassador Haque said that facilitating trade and exports of Pakistan’s high-quality products through Khunjerab border is Pakistan-China shared objective. A representative from the Pakistani transport company said that it is the first attempt at bilateral cross-border road transport business in partnership with a Chinese firm. He noted that the shipment cost by truck is far below that of air transport, and has simpler customs clearance procedures. In addition, shipment by road shortens transport time to eight days, which is suitable for small-scale and point-to-point logistics, while the sea transport from Karachi Port to Yangshan Port in Shanghai takes nearly a month.

The Khunjerab pass, a major land route on the China-Pakistan border was officially reopened for passengers and goods in first week of April this year after a closure of three years following the Covid-19 restrictions. At present, in wake of cold weather and lack of oxygen in the high altitude, Khunjerab pass generally opens from April 1 to November 30 every year, and remains closed from December 1 to March 31 of the following year.

However, the Pakistani and Chinese side are now working to keep the border crossing open for 12 months making it an all-weather facility. As per officials, the reopening of border between Pakistan and China is expected to witness huge growth of cross-border trade and transportation this year.

The export of cherry from Gilgit-Baltistan area has been allowed to China and this will open up a market of up to $ 2 billion. Similarly, sesame seed export to China has also increased.

The textiles, rice, cherry, mangoes and other food items could be exported to China which would help achieve target of one billion dollars of export to China. According to official data, the import and export cargo volume at the Khunjerab pass topped 200,000 tonnes from 2016 to 2020.

 

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Pakistani federal cabinet approves signing of four protocols with China for exports​

By Shafqat Ali
Jun 27, 2023

ISLAMABAD - On Tuesday afternoon (June 27), Pakistan's federal cabinet, led by Prime Minister Shehbaz Sharif, approved the signing of four protocols with China to regulate exports.

Under this decision, four separate agreements will be established between Pakistan and China. These protocols aim to regulate the export of donkey hides, dry chilies, beef, and dairy products to China.

The meeting also affirmed that health and safety standards, along with quarantine requirements, will be met.

The Ministry of Law and Justice has already approved these protocols, which the Ministry of External Affairs has not objected to.

Back in October, 2022, the Senate Standing Committee on Commerce was informed by the Ministry of Commerce that China had expressed interest in importing donkeys and dogs from Pakistan.

 

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Chinese businesses invited to tap the potential of Pakistan’s billion-dollar food market​

By Mariam Raheem
Jul 7, 2023

SHANGHAI- “The food and beverage processing industry is the 2nd largest industry of Pakistan after textiles. Pakistan’s high-quality specialty foods, including meat, sea food, value-added fruits and dairy products, are exported globally for their high quality and favorable prices.

We welcome Chinese enterprises to learn more about Pakistani advantageous food industry and commonly build a sustainable future for food security,”highlighted Mr Athar Hussain Khokar, Director-General, Agro Division, TDAP.

At a webinar hosted by the Trade Development Authority of Pakistan (TDAP) and Consulate General of Pakistan in Shanghai on July 6, Athar Hussain Khokar pointed out that FoodAg, Pakistan’s 1st international food and agriculture exhibition showcasing potential of Pakistan’s dynamic agro and food industry would provide a unique opportunity to visitors and exhibitors through its networking and matchmaking platform is scheduled from 10-12 August.

In total, there are approximately 2,500+ food processing units in Pakistan. Food processing accounted for an annual average of $223.5m in FDI from 2012-2018. Retail sales of processed food are expanding 10% per annum with current estimated size of about $1.4 billion (including $325 million worth of imported products), according to TDAP.

Pakistan’s processed food and agro-based products exports to China in 2021 were worth US$ 538 million, of which semi-milled or fully-milled rice, whether polished or glazed, and broken rice accounted for the first place in exports. Exports of seafood also showed a significant upward trend.

The COVID-19 pandemic has boosted consumers’ awareness of health, and Chinese consumers’ demand for nutritious, healthy food with diverse flavors is increasing. Pakistan is rich in natural and healthy foods, including honey and olive oil, which are popular among Chinese consumers who are increasingly demanding dietary adjustments.

Apart from the presence of top brands including Matco, Garibsons, Shaan, etc, the investment conference is another highlight of the FoodAg. On the occasion, companies from China will sign memorandums of understanding with Guard Rice, Pakistan.

The investment conference will introduce in detail the policies and incentives for investment in food factories in Pakistan, transfer of advanced Chinese technology to Pakistan, and process food locally and export.

Pakistan Contact Center In Shanghai (PCCS) is organizing Chinese traders to participate in the first FoodAg to visit Pakistan’s rich food and agricultural products resources and explore trade opportunities to export Pakistani food and agricultural products to the Chinese market.

Eric Gao, secretary general of PCCS shared that based on the current collection of corporate intentions, Chinese companies have shown keen interest in importing Basmati rice, flour salt and beef from Pakistan.

“In addition to the traditional import and export trade, we will also segment Pakistan’s food categories and promote them in China through Internet marketing. Through the deepening of cooperation, Pakistan will serve as a breakthrough for Chinese enterprises to go overseas.” he concluded.

 

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China greenlights imports of Pakistani dried chillies​

By Xiong Weisheng, Wang Kai, Pak-China Agriculture
Aug 18, 2023

BEIJING, Aug 18 (CPAIC) - The General Administration of Customs of China (GACC) has officially approved the import of dried chillies from Pakistan, marking a notable development in the trade relations between the two countries. This decision, detailed in a protocol released on August 10, outlines the phytosanitary requirements for Pakistani chillies.

The approval specifically pertains to chillies from the Capsicum annuum L. plant, grown within Pakistan's borders. This move signifies the entry of these chillies into the expansive Chinese market, as highlighted in the official announcement.

The protocol sets forth several conditions to ensure the quality and safety of the imported chillies. These include a robust regulatory framework, mandatory registration for chilli cultivation and processing establishments, pest control measures, and adherence to preexport protocols. Additionally, the packaging must meet specific standards, and the chillies will undergo inspection procedures both in Pakistan and upon their arrival in China.

Speaking to the China-Pakistan Agricultural and Industrial Information Platform (CPAIC), Xi Jianlong, a manager from CMEC group involved in Pakistan-China red chilli contract farming, shared insights on the recent development. "This announcement underscores the collaborative efforts between China and Pakistan. The requirements aim to ensure traceability, crucial for maintaining quality and safety standards," Xi stated.

The manager also emphasized the potential this presents for businesses. "Meeting these standards not only allows access to the Chinese market but also positions businesses competitively for other premium markets," he added.

Reflecting on the broader implications, the Chinese manager suggested that such developments could motivate other sectors in Pakistan to venture into international markets, capitalizing on the inherent quality and uniqueness of their produce.

It is also a boon for third-party service providers to help growers increase output and quality, he said.

 

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2023 CIFTIS: Standardizations key to enhance Pakistan's agriculture exports to China​

By Zafar Hussain
Sep 9, 2023

BEIJING- Pakistan's agriculture sector is poised for a boost in exports to China, through a renewed focus on standardization and quality control. After fulfilling China's required standardization on meat, chili, and other commodities, Pakistan signed MoUs with China to export these products from Pakistan to China, said Ghulam Qadir, Commercial Counselor, the Embassy of Pakistan in China.

Speaking with a forum titled “International Forum on Standardization Development of Agricultural Products”, at the China International Fair for Trade in Services (CIFTIS) on Wednesday, Ghulam Qadir said that China is helping Pakistan develop their standards for various crops, such as wheat, rice, cotton, and maize. This will involve defining parameters for crop quality, including size, weight, moisture content, and pesticide residue levels, among others.

“Both countries are working together to promote sustainable agricultural practices, emphasizing soil health, water management, and reduced carbon emissions. These standards aim to protect the environment while ensuring long-term food security. China is also helping Pakistan with the use of fertilizers, pesticides, and herbicides, with a focus on minimizing the presence of harmful residues in food items,” he added.

He further said that over the past few years, Pakistan has made substantial strides in improving its agricultural production, with a particular emphasis on quality control and meeting international standards. These efforts are now paying off as the country aims to capture a more substantial share of China's burgeoning agricultural market. He added that “we would get more support from China to ensure the standardization of the products if we want to improve our exports to China”.
“Pakistan's agricultural exports to China have historically been limited to a few commodities, such as rice, sesame seed, and cotton.

However, the landscape is evolving rapidly, as Pakistan diversifies its exports to include fruits, vegetables, and processed products. This transformation has been driven by a combination of factors, including increased investment in agriculture, improved infrastructure, and most crucially, adherence to international standards”, he added.

Qadir told the audience that Pakistani agricultural products now meet the stringent requirements of the Chinese market, ensuring food safety, quality, and traceability. This newfound reliability has increased Pakistan's credibility as a supplier and built trust with Chinese importers.

“Meeting Chinese standards for meat and chili products is essential for gaining access to this enormous market. With proper standardization, Pakistani producers can confidently explore export opportunities and access a growing middle-class consumer base in China.


Standardization assures Chinese consumers of the quality and safety of Pakistani agricultural products. This trust-building process will pave the way for long-term and sustainable trade relationships,” he stated.

“China's growing middle class is showing an increasing appetite for high-quality agricultural products, including fresh produce, grains, and processed foods. This trend presents a golden opportunity for countries like Pakistan, which have the potential to meet China's demands. By ensuring that its exports meet Chinese standards, Pakistan has positioned itself as an attractive source of agricultural products for its neighbor”, Qadir stated.

 

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Tianjin expects meat from Pakistan​

By Saira Iqbal
Sep 19, 2023

“Pakistani beef, donkey meat, donkey skin, and poultry products have great potential for export to China. We expect that Pakistani meat could enter China through Tianjin customs as soon as possible,” said Xing Yanling, president of Tianjin Meat Association.

Earlier this month, Bian Zhihong, secretary general of China Council for the Promotion of International Trade Tianjin sub-Council (CCPITTJ), along with Xing Yanling and others, paid a visit to the Pakistani Embassy in China and had a meeting with Ghulam Qadir, commercial counselor of the embassy.

“We appreciate Counsellor Qadir’s strong support to Tianjin International Meat Forum held in June and we look forward to promoting China-Pakistan trade cooperation in the meat industry,” said Bian Zhihong.

During the meeting, Xing Yanling introduced the basic situation of Tianjin Meat Association and the advantageous position and development prospects of Tianjin port. “We will visit Pakistan for a field trip when appropriate to promote exchange of the meat industries between China and Pakistan. We also want to invite Counsellor Qadir to visit our association and meat trade companies in Tianjin Port.”

Ghulam Qadir introduced the application progress of Pakistan's meat export to China and detailed the investment advantages of Pakistan's meat industries including breeding, slaughtering and processing. “We welcome Chinese enterprises to invest in Pakistan. Pakistan will provide all aspects of support and a sound investment environment for investors.” He added.

 

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Pakistan’s exports to China increase by 5.16% in 2 months​

APP
Oct 7, 2023

Pakistan’s export of goods and services to China witnessed an increase of 5.16 per cent during the first two months of the current fiscal year (2023-24) as compared to the exports of the corresponding period of last year, State Bank of Pakistan (SBP) reported.

The overall exports to China were recorded at US $350.297 million during July-August (2023-24) against exports of US $333.077 million during July-August (2022-23), showing growth of 5.16 per cent, SBP data revealed.

On a year-to-year basis, the exports to China also surged by 25.09 per cent from $159.021 million in August 2022, against the exports of $198.932 million in August 2023.

Meanwhile, on a month-on-month basis, the exports to China rose by 31.42 per cent during August 2023 as compared to the exports of $151.365 million in July 2023, the SBP data revealed.

Overall Pakistan’s exports to other countries witnessed a decrease of 8.26 per cent in the first two months, from US $ 4.951 billion to US $ 4.541 billion, the SBP data revealed.

On the other hand, the imports from China into the country during the months under review were recorded at US $ 1861.702 million against US $2377.070 million last year, showing a decline of 21.68 per cent in July-August (2023-24).

On a year-on-year basis, the imports for China also witnessed a decrease of 28.17 per cent from US $1251.219 million in August 2022, against the imports of US $898.722 million in August 2023.

On a month-on-month basis, the imports from China into the country dipped by 6.67 per cent during August 2023, as compared to the imports of US $962.980 million during July 2023, according to the data.

The overall imports into the country witnessed a decrease of 26.01 per cent, from $11.474 billion to US $ 8.489 billion, according to the data.

 

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China customs allows Pakistani dairy products to export to China​

By Zafar Hussain | China Economic Net
Nov 8, 2023

BEIJING - General Administration of Customs of China announced on Monday to allow the export of Pakistani milk and dairy products to China. Ghulam Qadir Commercial Counsellor at Pakistan Embassy said this decision marks a significant milestone in the bilateral trade relationship between the two nations and has the potential to create a new avenue for economic cooperation.

Ghulam Qadir said that as China continues to diversify its import sources, the move is expected to open up lucrative opportunities for Pakistan's dairy industry, potentially reshaping the dynamics of the global dairy trade.

“Feeling jubilant over this new development. With this we are Inching closer towards sustainable bilateral trade between Pakistan and China with bigger share of Pakistan’s exports”, he added.

According to announcement from GACC Foods made from cow's milk or camel's milk, including milk powder, whey powder, whey protein powder, bovine colostrum powder, sterilized milk, modulated milk, fermented milk, cheese and processed cheese, thin cream, cream, anhydrous cream, these dairy products can be exported to China from Pakistan.

The statement further states that dairy animals that provide raw milk for dairy products exported to China shall meet different standards including FMD quarantine restrictions have been lifted for at least 2 months and The farm has not been subject to quarantine restrictions for anthrax in the past 12 months.

“Dairy products to China must be packaged in new materials that meet Chinese standards. The outer packaging shall be marked in Chinese, Urdu and English with specifications, origin (specific to the state / province / city), destination, product name, weight, manufacturer name, registration number, production batch number, storage conditions, production date and shelf life,” statement added.