Exports: Pakistan secure $1billion Duty-Free Access into China
Advisor to PM on Commerce Abdul Razzak Dawood told that Pakistan has managed to secure $1billion duty-free market access into Chinese exports.
It will double the country’s exports within one year. In a press conference on Wednesday, Dawood said that Pakistan has requested for duty-free status that the Association of Southeast Asian Nations, as well as Bangladesh, are entitled to. In its response, Beijing has offered this facility to Pakistan.
“Prime Minister Imran Khan’s visit was very successful and it provided very good opening in shape of the $1 billion facilities,” Dawood told.
He also told that Chinese Premier Li Keqiang has assured that the facility will be raised to $2 billion in 2019 if it was fully utilized by Pakistan.
Pakistan’s Trade Policy:
Further liberalizing Pakistan’s trade policy was also announced by the PM’s Advisor. Drafts of tariff and trade policies are ready for the PM’s approval.
The Advisor said that CPEC had been vindicated after both countries agreed to move beyond infrastructure and power projects. PM’s visit to China has set grounds for implementation of the second phase of CPEC.
“Pakistan exports have remained on a declining trajectory for almost five years. The country recorded $37 billion trade deficit, the highest-over, in the last fiscal year, nearly half of which is because of the trade imbalance with China,”
he said at the conference.
Dawood further told that it was also decided that what goods could be exported to China. Also how much textile, leather and other goods could be exported for the utilization of the facility.
A Pakistani delegation will soon visit China. It will hold talks in Beijing on November 9 for the finalization of details of market access and balance of payments support program.
During last year, Pakistan’s exports to China were $1.2 billion nuts it will now be doubled because of this facility.
Both Pakistan and China have agreed to enhance the cooperation in areas of industrial development and agriculture.
“Pakistan has offered China to avail the benefit of the low-cost labor and set up factories here to export goods to other countries,”
the Advisor told.
Free Trade Agreement was also agreed between both sides. It will be finalized before June 2019. Further talks in this regard will be held in Beijing.
An update on CPEC:
“Pakistan and China have agreed to broaden the CPEC trajectory. It will now be one corridor with many doors.”
The Planning Minister also stressed the need for accelerating industrial cooperation. He said that the next phase of CPEC will be more advanced with a focus on:
- Agricultural revitalization
- Trade integration
The PM’s Advisor concluded the press conference while saying that he is planning to declare one of the existing industrial zones as prioritized Special Economic Zone (SEZ) under CPEC.