DNA
ISLAMABAD, DEC 9 – Pakistan exports to China has increased by 30% during last month, resulting in the improvement of trade balance between the two countries, Gwadar Pro reported on Wednesday.To address issue of trade deficit, the major concern of Pakistani side, China has proactively taken a lot of measures to maintain a balanced trade relation with Pakistan between the two sides.
The report says, China is keen to expand more market access for Pakistani products and organizes varieties of trade promotion activities in Pakistan and China every year.
Adviser to Prime Minister for Commerce and Investment Abdul Razzaq Dawood had stated in a tweet that during Nov 2020, Pakistan’s exports to China increased considerably.
This healthy trend is an indication that our exports are re-gaining their momentum. It was advised that the exporters should aggressively market their products in geographically diversified areas.
Giving a good start, the governments of the two countries had slashed tariffs on more than 300 categories of imported items that are widely used as raw material for the export of goods.
According to the report, along with the constant upward trend of China-Pakistan trade, a rising concern on trade deficit with China had been echoing in the Pakistani business communities.
It is pertinent to mention that the main reason behind the trade imbalance has to be the structural problems in nature between industries of two countries.
China has a strong manufacturing base to export goods as compared to import. Up to now, China turns to be the largest trading partner of more than 120 countries and regions in the world, and China has never intentionally pursued the trade surplus, not with any trade partner.
Therefore, It is time to dedicate some technical and financial resources to drawing a full map to determine how exports to the entire world, and more specifically to China, can grow.
It is up to the subject specialists to come up with viable options for reducing Islamabad’s trade deficit with Beijing and improve trade balancing.
Moreover It is up to the political leadership of the two countries to sort out this issue as early as possible. That will also deepen their strategic geopolitical ties.
The outbreak of the novel coronavirus has led to economic recession in major parts of the world and year 2020 is going to end with a deeper recession than the one seen in the wake of the global financial crisis more than a decade ago.
A change in trade policy factoring in all the possibilities in global trade dynamics is a must. There is perhaps a greater need for promoting intra-regional trade to take advantage of the economy of trade, the report added.
