ISLAMABAD: The government has created 20 new posts in Trade Section of Pakistan’s Mission in China to boost exports, secure foreign direct investment and improve efforts for relocation of Chinese industries to Pakistan.
Official sources told Business Recorder, Commerce Division briefed the ECC on November 1, 2024 that China is Pakistan’s largest trading partner and largest source of Pakistan’s trade deficit.
In 2023-24, Pakistan’s export to China stood at $ 2.560 billion while imports were $ 14.512 billion, with a trade deficit of approximately $ 12 billion.
Pakistan, China agree to further enhance bilateral cooperation in multiple sectors
Pakistan needs a significant leap in exports to China along with substantially enhanced level of FDI to offset this large trade gap.
With current human resource at the Missions in China, it was not possible to tap the trade and investment opportunities to a desirable scale. To effectively tap the opportunities in China for decreasing this trade gap via exports and FDI, there is a need to strengthen the Missions with appropriate Human Resource.
During a meeting chaired by the Prime Minister on June 25, 2024 on “Sectoral Briefing” of Board of Investment (BoI), the PM directed to present a plan for beefing-up the economic diplomacy by hiring local staff for better coordination with local authorities and supporting B2B engagements.
Subsequently, the Ministry of Commerce, after consultations with BoI and Ministry of Foreign Affairs (MoFA), moved a Summary for creation of posts to enhance Pakistan’s trade diplomacy in China. The Prime Minister has approved the creation of 20 posts in China. Finance Division has also given concurrence for creation of the posts. Furthermore, the Finance Division had communicated that the Ministry of Commerce may place the matter before ECC for allocation of additional budget. For the Financial Year 2024-25, the Ministry was allocated a budget of Rs.5.518 billion ($19.707 million, @ PKR 280/- per US$) for operational expenditures of the Trade Missions.
To enhance the operational capacity of the Trade Missions abroad an estimated additional amount of Rs.226.720 million would be required during the current fiscal year to meet the expenditure of the remaining period from November, 2024 to June, 2025. The allocation of additional resources was imperative for effective trade diplomacy and operational efficiency of Trade Missions to boost exports, secure foreign direct investment and improve efforts for relocation of Chinese industries to Pakistan.
The Commerce Division requested the ECC for allocation of Rs.226.720 million as Technical Supplementary Grant to support Trade and Investment Missions in China
To meet additional demand for operational expenditure for the remaining period i.e. from November, 2024 to June, 2025 the Finance Division supported the request of the Ministry of Commerce for Technical Supplementary Grant of Rs.226.720 million during FY 2024-25 to meet the additional expenses for new Trade and Investment Missions in China.
Copyright Business Recorder, 2024
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