In comparison with the same period last year, Pakistan's exports to China increased by 40.36% in the first six months of the current fiscal year (July to December 2023). The State Bank of Pakistan (SBP) reports that overall exports to China from July to October were USD952.216 million, a considerable rise from USD678.386 million during the same time in the Fiscal Year 2022–2023 of the previous year. One of the major reasons why the trade between China and Pakistan witnessing a top trend is because of export trading portal. B2B trade portals play a vital role in boosting the overall trade between these two friendly countries.
The notable increase in export and trade activity between China and Pakistan suggests that the two countries' economic ties are getting stronger due to several reasons that support the expansion of exports. The two countries' cooperative efforts and bilateral trade agreements are probably essential to promoting this increasing trend.
The Pakistani commerce ministry said on Tuesday that the Chinese government is taking into consideration a proposal from Pakistan to modify the two countries' current Free Trade Agreement (FTA) to give loans to promote the relocation of Chinese businesses and provide trade finance to Pakistan in yuan.
Pakistan's Interim Commerce Minister, Gohar Ejaz, requested his current visit to China. The proposed revision to the FTA aims to extend preferences to Pakistani products and align them with an FTA between China and the ten-member Association of Southeast Asian Nations (ASEAN), signed in 2010, which lowered tariffs to zero on thousands of categories of imported goods.
In a statement, the Pakistani commerce ministry said, "Pakistan has also urged China to allocate $5 billion in yuan for financing investments to facilitate the relocation of Chinese companies to Special Economic Zones (SEZ) or Export Processing Zones (EPZ) in Pakistan." To strengthen economic links, the Pakistani delegation has also arranged several business-to-business (B2B) meetings. These sessions have given Chinese and Pakistani businesspeople a forum for debate. The main goal was to enhance trade relations between these two countries and promote trade portal in Pakistan. This will surely increase foreign direct investment as well as lowering the trade deficit.
China will help Pakistan increase its exports to China as per the MOU. The commerce minister stated that the MOU will significantly boost Pakistan's exports to China, create jobs, and balance bilateral trade. The purpose of the discussions was to explore potential investment possibilities in Pakistan and to fortify Pakistan-China commercial connections. One of the main topics of discussion was the Special Investment Facilitation Council's (SIFC) role in enabling these possibilities. The conversations delved into cooperation across a range of industries, including mining, commerce, lodging, building, electric vehicle infrastructure, farming, and rice procurement.
In order for Pakistan to benefit from free trade agreements (FTA) that drive China Pakistan economic linkages, the country must restructure its exports capacity and skill development. This applies to trade, commerce, investment, and education.
