Pak-China ties: Islamabad gets a slight upper hand in trade

[Dance]

BEIJING: Pakistan-China bilateral trade registered an overall growth of 22% by reaching the mark of $10.6 billion in 2011 with Islamabad achieving a slight upper hand over the world’s largest exporter.
Pakistani exports increased 23% to $2.12 billion while imports from China the world’s largest importer grew 22%.
“If we have more exportable surplus, the vast Chinese market will be able to absorb our commodities and services. I have no doubt about that,” said Pakistan’s Ambassador to China Masood Khan, adding that the appetite for Pakistani products was increasing.
Pakistan and China have resolved to increase their trade to $15 billion in the next two to three years.
Pakistan’s exports to China were $1 billion in 2008, however, exports have doubled since then following implementation of free trade agreement between the two countries. In the past three years, the bilateral Free Trade Commission (FTC) met twice to boost Pakistan-China trade.
Pakistani traders have been especially focusing on textiles, leather products, precious stones, and handicrafts.
“Pakistani traders are now looking eastward towards China with greater interest. This trend is growing”, the ambassador said.
In the years to come, entry points of agricultural produce from Pakistan would also be increased, added Khan.
The biggest increase in exports to China during the year was in cotton yarn, home textiles, garments, copper and copper scrap, plastic scrap, leather goods, fish products, medical and surgical instruments, chemical products, and food stuffs.

Pak-China ties: Islamabad gets a slight upper hand in trade – The Express Tribune

 

[Chinese-Dragon]

Very nice.



We have the largest number of consumers in the world, anything Pakistan exports, we can buy it.

 

[VCheng]

Very nice.



We have the largest number of consumers in the world, anything Pakistan exports, we can buy it.

Even when domestic production is cheaper and/or better quality? I don't think so. Pakistani products will need to create their business case first if they are not to need subsidies of one kind or another.

 

[ChinaToday]

very good news this is the least we can do for our good friend Pakistan

 

[Chinese-Dragon]

Even when domestic production is cheaper and/or better quality? I don't think so. Pakistani products will need to create their business case first if they are not to need subsidies of one kind or another.

Fair enough.

My point was that China is one of the biggest importers in the world, it's a good market to get into if you are competitive enough.

 

[BATMAN]

Even when domestic production is cheaper and/or better quality? I don't think so. Pakistani products will need to create their business case first if they are not to need subsidies of one kind or another.

why do you have objection and where do you read it?

WHat is your opinion on subsidized transit aid and tax exemptions which Pakistan grant to foreign states?

 

[Icewolf]

And look at our economy. -.- Kick out Zardari

 

[Abhishek_]

good to hear and congrats PK
china needs to increase imports even further. it's beneficial for everyone.

 

[VCheng]

why do you have objection and where do you read it?

WHat is your opinion on subsidized transit aid and tax exemptions which Pakistan grant to foreign states?

Please read the followiing post carefully to understand what it really means:

Fair enough.

My point was that China is one of the biggest importers in the world, it's a good market to get into if you are competitive enough.

... before you fly off the handle.

Whatever Pakistan offers in subsidies to other states (or not) is not the topic of this thread.

 

[iajj]

Even when domestic production is cheaper and/or better quality? I don't think so. Pakistani products will need to create their business case first if they are not to need subsidies of one kind or another.

VCheng, this is a rare post in all the comments i read from you in all these years where someone's pretense to some sort of coolheaded and reasonableness actually helps to clarify and not obfuscate and deliberately mislead. kudos.

yes, chinese customers will only buy from pakistani exporters if prices prove competitive and quality proves comparable. the day may yet come that the leadership of china decides to heavily subsidize import from pakistan out of political reasons, but i don't think that would be good for pakistan because by then the latter's economy must already be under extreme stress

 

[fly2012]

This is great news. A stable and properous Pakistan is China's core interest. China can help Pakistan a little initially to boost its export and with time I am confident Pakistani business men can pick up. There got to be market Pakistan can fill. For instance, I read that Xinjiang imported a lot goods from Turkey. Geographically Pakistan is next to Xinjiang where locals are majority Muslims.

 

[T90TankGuy]

nice to hear . all Pakistan needs to concentrate on now is enlarging their economy and strengthening it .

 

[VCheng]

VCheng, this is a rare post in all the comments i read from you in all these years where someone's pretense to some sort of coolheaded and reasonableness actually helps to clarify and not obfuscate and deliberately mislead. kudos.

yes, chinese customers will only buy from pakistani exporters if prices prove competitive and quality proves comparable. the day may yet come that the leadership of china decides to heavily subsidize import from pakistan out of political reasons, but i don't think that would be good for pakistan because by then the latter's economy must already be under extreme stress

Thank you for agreeing with and clarifying my point. Well said.

 

[farhan_9909]

if it says the export grew by that many percent

it does mean that Pak is improving the quality as well as giving a fair cost

 

[true_indian]

But the thing is trade is 80% in favor of China. That's really bad. For all the talk by the Chinese here, the action is missing.

Facts:

Total trade: $10.6 billions

Pakistan exports: $2.12 billions

So obviously China's exports or Pakistan's imports equal 8.48 billion. That's massive. I can't believe that Pakistan thought it would benefit from China FTA. It seems more a political decision rather than economic one. I know, I know China is Pakistan's best friend. But you wouldn't kill yourself to cater to your friend, do you?

PS: The news article very cleverly avoided this outlook to make it sound as if this trade is all hunky dory, which it is not.