China facilitating Pakistan’s service trade

BEIJING, Aug 28 (APP):”Pakistan is a country with a population of more than 200 million and has a huge consumer market. Population and resources are huge advantages for the development of service trade, and their labor force is very young,” said Zhang Wei, chief expert of China Association of Trade in Services.

During the FY2020-2021, Pakistan’s service exports increased by 9.19% to US$ 5.937 billion, and the service trade deficit fell sharply by 43%. Pakistan service trade shows great potential. For its development, Zhang Wei shared his advice.

“For Pakistan, the development of the network infrastructure industry should be the priority. It is necessary to establish 4G and 5G base stations, especially in ports where cross-border freight is concentrated and large cities where cross-border trade is concentrated,

this is the foundation of developing online cross-border trade.” Zhang Wei told CEN that he knew there are many Chinese network companies including China Mobile investing in Pakistan for its infrastructure network facilities and he strongly supports that.

Zhang Wei also stressed the importance of the processing trade development.
“Pakistan’s exports to China, including agricultural products and minerals, are all resources products.

China’s exports to Pakistan are all manufacturing products, home appliances, electronics, and mechanical products. Such trade in goods between China and Pakistan is bound to have a deficit.” Zhang Wei said, adding that Pakistan should increase the added value and variety of products, which could help increase the employment and promote the development of service trade.

Last year, China signed RCEP with other 14 countries. Zhang Wei noted that it manifests the international cooperation tendency of establishing free trade zones and signing free trade agreements.

“More and more countries have reached a consensus to be more open and provide convenience in their customs. All participants have benefited from RCEP. Vietnam has cooperated with China in entrepot trade, and Singapore and China cooperate in offshore finance. RCEP can provide them with more conveniences and profits.

These have strong references for Pak-China cooperation. China and Pakistan also have free trade agreements which can be fully utilized.”

“Trade between Pakistan and China has progressed a lot during the first 6 months of 2021. In this duration, Pakistani exports have increased up to 80%.

The reason behind this is that in 2020 the second phase of FTA was launched,” said Moin ul Haque, Pakistani Ambassador to China.

“Along with that we are trying to arrange promotional events, many Pakistani pavilions are established in many cities of China, through which we are promoting trade and products of Pakistan.”