The trade war between China and United States of America (USA) can be beneficial for Pakistan. The Pakistani government is not looking to freeze work on the China-Pakistan Economic Corridor (CPEC) but wishes to bridge the trade deficit with China.
This was stated by Prime Minister Adviser for Commerce, Textile, Industry and Investment Abdul Razak Dawood in a meeting with members of Pakistan Hosiery Manufacturers Exporters Association (PHMA) at Karahi. This was the first meeting undertaken by Abdul Razak Dawood after assuming charge as the PM’s Adviser. Industrialists and exporters discuss the matters which are hurting the exports.
Abdul Razak Dawood said that the trade war between China and USA is getting bigger and bigger by day but the demand of goods is not on a decline. Pakistan needs to explore ways so that it can benefit from this war. Pakistan can import Chinese semi-finished goods, and with a little value-addition, these goods can be exported to USA and western countries.
“Pakistan needs a strategy to benefit from this trade war. The government needs input from the trading and exporting community about how to benefit from this. The business community needs to do its homework on this issue and guide the government about what to do in this regard. The real devil is in the details,” Abdul Razak said.
When asked by ProPakistani regarding the news on freezing work on the CPEC, Abdul Razak Dawood said that he was misquoted in the news. The government’s point of view was also communicated during the meeting with Chinese diplomats. Pakistan wishes to bridge the trade gap with China. We demand the same market access as China has give to Association of Southeast Asian Nations (ASEAN) under the Free Trade Agreement (FTA).
“There is realization by the Chinese authorities regarding the trade deficit issue faced by Pakistan. We are negotiating on the FTA in a very friendly manner. Pakistan needs Chinese investment in the country and as the minister in charge, I am working on this. Industrialists are ready to do joint ventures with Chinese industries,” Abdul Razak added.
Abdul Razak Dawood said that on November 4th this year, he will be visiting China. His meeting with trade bodies is being organized so that he can be better prepared. A buyers delegation from China is scheduled to visit Pakistan on October 8th. China has given 313 preferential lines, and this presents a great opportunity for Pakistani exporters to find their market in the mainland.
On the question of Chinese investment in trade of primary goods, Commerce Adviser said that it is the matter of great concern and that he will lay down the policy for the trade of primary goods.
“If they take all the primary goods from us, what we will manufacture?” the Adviser added.
Chief coordinator Muhammad Jawed Bilwani told the meeting that in Pakistan, cotton production is on the decline and this is hurting the textile industry. Exports of fashion apparel is at $ 5.3 billion, a figure that comprises 36 percent of the total textile exports.