Long-term contracts: China would talk to elected govt, only

ISLAMABAD: China is reportedly unwilling to talk to the caretaker government for long-term contracts in any sector and is waiting for the elected government for further cementing business relations.

Background interviews with some of the businessmen, who accompanied the caretaker Minister for Commerce and Gohar Ijaz during his recent visit to China, told this scribe that the Chinese are waiting for the elected government for new endeavours to strengthen business relations.

Pakistan is desirous of an expansion of the current Free Trade Agreement (FTA with China, which is massively in favour of Beijing.

Progress seen in Sino-Pak trade ties

The sectors covered in the delegation’s visit include agricultural, electric vehicles, marble, cement, fertiliser, fruit and vegetable, home appliances, glass, chemicals and textiles.

The caretaker Minister held meetings with Chinese officials and private sector. He did not meet this Chinese counterpart with any specific agenda on trade expansion.

According to the caretaker Commerce Minister, China’s exports to Pakistan stood at $ 20 billion per annum whereas Pakistan’s exports to China are merely $ 2 billion.

During individual meetings between Pakistan’s delegation with their Chinese counterparts, the latter insisted that whatever agreements are reached should be honoured in letter and spirit.

Pakistani businessmen who held meetings with their Chinese counterparts received an encouraging response with respect to enhancing business to business relations, but Pakistani businessmen are not disclosing their deals with Chinese companies.

Citing an example, the entrepreneur stated that one of the members of the delegation said that he was leaving for Pakistan but later it was revealed that he went to some other province to meet his counterpart for a deal. He is expected to start exporting his product very soon.

The information collected from the entrepreneurs also suggest that Chinese officials were not happy with the statement of caretaker Minister for Commerce and Industry with respect to trade balance with China.

“Chinese are extremely angry at the statement of caretaker Commerce Minister with respect to imbalance in trade,” said one of the entrepreneurs.

The delegation, sources said, was surprised to note that lights were turned off in Beijing during late hours of the night as the Chinese government was saving electricity.

“What we saw in Beijing was totally contrary to Pakistan where traders are not ready to close their shops after at 8 pm or 9 pm,” they stated.

According to an official statement, the delegation actively participated in the China-Pakistan Textile Summit, a pivotal event that brought together industrial leaders from both nations. Engaging in insightful discussions, the delegates aimed to fortify bilateral trade relations and explore avenues for increased cooperation.

A significant milestone during the visit was the signing of a Memorandum of Understanding (MOU) between the China Chambers of Commerce and All Pakistan Textile Mills Association (APTMA). This agreement marks a commitment to enhance collaboration and promote mutual interests in the textile sector.

The delegation seized the opportunity to engage in fruitful Business-to-Business meetings with their Chinese counterparts. The focus was on enhancing textile imports and exports, with the ultimate goal of strengthening economic ties between the two countries, the statement added.

Copyright Business Recorder, 2023