Pakistan can increase exports to China up to $4-5 billion in medium run under CPFTA-II

RAWALPINDI: The second phase of China-Pakistan Free Trade Agreement (CPFTA-II) is a huge step and offers great opportunities to Pakistan’s business community.

These remarks were made by Rawalpindi Chamber of Commerce and Industry (RCCI) President Saboor Malik at an awareness seminar organised by the Trade Development Authority of Pakistan (TDAP) on Saturday.

Mr Malik said it was a commendable initiative to strengthen trade liberalisation and deepen the all-weather strategic partnership between Pakistan and China.

“Pakistan can increase its export by $1 billion in short term while the export of these items is likely to touch $4-5 billion in the medium term after setting up new industries in the special economic zones being constructed in Pakistan under the China-Pakistan Economic Corridor (CPEC),” he said.

The RCCI president said China had eliminated tariffs on 313 products. Tariff lines include textile, garments, seafood, animal products, prepared food, leather, chemicals, plastic, oil seeds and engineering goods including tractors, auto parts, home appliances, gems and jewellery, cement, footwear, chemicals, plastics, rubber, paper and semi-finished goods. However it mostly includes non-technological goods.

Mr Malik cautioned that by exporting only agriculture products, Pakistan could not survive in the 21st century. The country needs to increase its technological advancements and exports to catch up with the rising economies of the world, he added.

He demanded that producers and existing industry of Pakistan that have direct relevance and export potential should be facilitated.

The Pakistani government should consider facilitating exporters who face delay in getting clearance through state banks, he said, adding that a lot more work needed to be done in collaboration with government institutions to reap benefits of the China-Pakistan Free Trade Agreement Phase 2.

“There is a need for conducting awareness sessions regarding China-Pakistan Free Trade Agreement. Still people do not know about GSP and GSP Plus awarded by Europe and America and only a few sectors are getting limited benefit from these facilities. We strongly recommend that this agreement should be advertised on mass level so that maximum businesses benefit from this facility,” he said.