Pakistan falls in love to its economic determent ( IMO)

[JayAtl]

Let me preface the post by saying. I'm not attacking Pakistan or China. As God is my witness - this is purely an economic discussion and my opinion from what I have read in very many articles.

Let's start by saying a few things :

1. We know Pakistan has a great relationship with china and as it should
2. That china, like any other country, has a right to look out for its interest foremost
3. Please please please look at this introspectively and not point fingers at others. after all you love your country and should be concerned about its economic policies.
4, If you miss this opportunity to discuss it sanely or make excuses for China, then you only do a disservice to your economy.
5. Finally PAK _CHINA Bhai Bhai yes! but my point is not " Ayre Bhai! "

From an economic perspective Pakistan has chosen to fall in love with china and not seek to be a vocal partner. why? because it has allowed china to overrun a huge trade deficit, to the determent of killing Pakistan's home grown industry.

Take at look the what i read in the past Pakistan News Service - PakTribune

The 75 locomotives were ordered from China after President Zardari himself intervened and forced the Railways to oblige the Chinese suppliers despite large-scale opposition within the Railways Ministry. Railways Minister Ghulam Ahmad Bilour had gone on record against the Chinese suppliers but he was given a shut-up call.

The GM Railways disclosed that already an advertisement to purchase 150 locomotives has been published internationally and now the Railways will ensure that no substandard locomotives are procured.

Sources say the Chinese supplier has also refused to honour the warranty on these 32 locomotives as they are in Railways sheds in Karachi and Lahore. Purchase of 69 sub-standard locomotives from China by spending billions of rupees was one of the initial mega corruption scandals against General Pervez Musharraf and his team.

Pol Eco, NOS, The News International Pakistan dumping grounds for china

analysis of mutual trade statistics reveals that since the signing of Free Trade Agreement (FTA) between the two countries in Nov 2006, China has exported goods worth around $ 11 billion whereas Pakistan’s exports could hardly reach $ 0.25 billion.

Another misbalance in this respect is that Pakistan imports about 1,000 items from China while the latter’s export-basket is limited to hardly 50 items. Pakistan exports items like seafood, cotton yarn, leather, marble, fruits, sports goods, rice, raw hides and vegetables. On the other hand, China exports almost every thing available under the sun to Pakistan and that also at very low prices. Mass availability of these goods at low rates has pushed local industry out of competition.

Pakistan’s local industry alleges that the absence of government patronage and lack of supporting infrastructure, like energy, water, roads, has spurred import of cheap Chinese goods into Pakistan. Industrialists say China dumps a lot of goods into Pakistan but no action is taken for various reasons. The biggest of these is that Pakistan does not want to take even a symbolic step that harms friendly relations between the two, they add.

a report prepared by the Lahore Chamber of Commerce and Industry (LCCI) reveals that due to the dumping of China clay crockery from China, the pottery industry of Pakistan has disappeared from centers like Gujranwala and Gujrat.

The report says out of a total of five units, four have closed their commercial operations. These are Prey China, Dada Bhoy, Pakpur, and Regal China while the last one -- Lone China -- is on the verge of collapse.

The trade deficit right now for Pakistan is $5.2 billion.

Although there has been positive signs In 2010, Pakistan’s imports from China also increased by $1.4 billion - but this is a drop in the bucket vs. the slow bleeding out of Pakistan's industries given the relationship between the two countries for decades!

 

[Pak_Sher]

Once Pakistan can overcome the enrgy crisis the trade deficit will narrow with increased industrial output and higher revenue collection. Pakistan does need to protect it's local industry like other countries.

 

[JayAtl]

Once Pakistan can overcome the enrgy crisis the trade deficit will narrow with increased industrial output and higher revenue collection. Pakistan does need to protect it's local industry like other countries.

Your energy crisis although hampering your industries- But you been having his kind of dumping going for years before you had such serious energy issues.

another thing: did you know all those highway projects with china. that you have to:

1. must hire their companies to do it ( overwhelming majority share)- Pak industries are not allowed anywhere close to it
2. Must pay them royalties for years on those projects

I mean you guys are fully capable of building roads and highways. In some regards you guys have had better infrastructure vs India . But all these projects of dams , electric stations by China- you are getting taken to the bank on them. Pakistan has to pay china for decades, ongoing royalties and fees for building it on top of paying back the principle plus interest!- one would get you fired in a corporate environment if you had such horrible contract negotiations.

You folks have to stand up to China and demand better deals and access. Be a partner not a lover...actually be as savvy as China is in negotiating is what I'm saying.

 

[Trisonics]

From an economic perspective Pakistan has chosen to fall in love[/U] with china and not seek to be a vocal partner. why? because it has allowed china to overrun a huge trade deficit, to the determent of killing Pakistan's home grown industry.


Although there has been positive signs In 2010, Pakistan’s imports from China also increased by $1.4 billion - but this is a drop in the bucket vs. the slow bleeding out of Pakistan's industries given the relationship between the two countries for decades!

This has got nothing to do with China alone. Pakistan's export is mainly agricultural products, cement, textiles and some defense products. A country like China has nothing much to import from Pakistan.

China is also in every other business that Pakistan and India are in. Hence, its very hard to compete against them for a country like Pak.

What PAK has to do is something similar to India, that is focus more on the service Industry and Manufacturing. It will be tough since its surrounded by India and China but they can hold their own if serious efforts are put in.

 

[JayAtl]

^^^In 2010, Pakistan’s imports from China also increased by $1.4 billion. Although a drop in the bucket it shows they do have tons to export if given a fair opportunity . The problem is - china does it in piece mail and bits ( these same industries have existed for decades in pakistan , why only now are getting access- why are the number of items allowed to be sold is so few? )

PAK should walk away from the current Free trade agreement and demand better terms IMO

The biggest of these is that Pakistan does not want to take even a symbolic step that harms friendly relations between the two, they add.

Btw I agree with the other assumptions you have made 100% i.e. Pak must focus more on the service Industry and Manufacturing.

 

[Chinese-Dragon]

I'm not attacking Pakistan or China.

You have got to be kidding me. That is your sole purpose on this forum.

On topic, I think that China should give preferential treatment to Pakistan, due to the fact that they are one of our closest allies.

If they ask for better terms, we should give it to them.

 

[mautkimaut]

You have got to be kidding me. That is your sole purpose on this forum.

On topic, I think that China should give preferential treatment to Pakistan, due to the fact that they are one of our closest allies.

If they ask for better terms, we should give it to them.

If you see he has only written that Pakistan should ask for better agreement so that they can export to China as well.

 

[Chinese-Dragon]

If you see he has only written that Pakistan should ask for better agreement so that they can export to China as well.

Check why he was banned last time.

And I agree that if Pakistan asks for a better agreement, we should give it to them.

It will certainly strengthen the China-Pakistan friendship. So it is definitely worth it.

 

[lionheart1]

You have got to be kidding me. That is your sole purpose on this forum.

On topic, I think that China should give preferential treatment to Pakistan, due to the fact that they are one of our closest allies.

If they ask for better terms, we should give it to them.

if any one ask question it doesn't mean attacking he has raised a valid question? please answer the question if you can

 

[JayAtl]

Check why he was banned last time.

Chinese posters: India no toilets
Chinese posters: India kids left to starve to death
Chinese posters: India is all poverty and dirty
Chinese posters: China should nuke India

PDF= No deletes no bans

In response:
Me= China Lied about 30 million starvation
Me= China put world at risk with SARS
Me= China tainted milk killed babies
me= china manipulates currency

PDF= Ban Jay ATL

But can we move on to topic at hand please?

 

[Chinese-Dragon]

if any one ask question it doesn't mean attacking he has raised a valid question? please answer the question if you can

I have already given my opinion, twice.

China is a trade surplus nation, so of course we will tend to run trade surpluses with other countries. Obviously.

Most other countries would not even merit a response on this issue, but Pakistan is a special case, due to our long-standing friendship with them.

So any re-negotiations regarding trade agreements, should be done in favour of Pakistan.

 

[lionheart1]

I have already given my opinion, twice.

China is a trade surplus nation, so of course we will tend to run trade surpluses with other countries. Obviously.

Most other countries would not even merit a response on this issue, but Pakistan is a special case, due to our long-standing friendship with them.

So any re-negotiations regarding trade agreements, should be done in favour of Pakistan.

a country like pakistan and country like china signing free trade agreement is like giving control of your economy to china , SME are back bone of any country , it provide employment to crore of people and 60% of IIP is generated by it .

due to this free trade agreement SME's of pakistan is at serious disadvantage

 

[ajtr]

when friendship is strategic then economic is more of a just plus point and takes backseat.Atleast china dont sell pakistan the foodgrains like india sell it to bangladesh.

 

[Rafi]

I have already given my opinion, twice.

China is a trade surplus nation, so of course we will tend to run trade surpluses with other countries. Obviously.

Most other countries would not even merit a response on this issue, but Pakistan is a special case, due to our long-standing friendship with them.

So any re-negotiations regarding trade agreements, should be done in favour of Pakistan.

The PRC is a friend, the relationship between our two countries has stood the test of time, and is based upon mutual benefit and mutual interest, exports have increased to China - which is a welcome step, also we benefit from importing many goods that previously we imported from the west, at much higher cost, and regarding irritants, well no relationship is perfect, but both sides will continue removing all impediments to a stable partnership.

 

[ajtr]

a country like pakistan and country like china signing free trade agreement is like giving control of your economy to china , SME are back bone of any country , it provide employment to crore of people and 60% of IIP is generated by it .

due to this free trade agreement SME's of pakistan is at serious disadvantage

it doesnt matter much if it can keep india at bay.