Pakistan's export to China registered 27 percent growth in the first five months this year, making considerable headway in overall economic interaction between the two countries, according to the Chinese Customs Authorities.
The country's export to China between January and May 2006 was amounted to US $381.25 million. It was $299.7 million in the corresponding period last year. Hence, the increase in Pakistan's exports to China in a period of five months was about $82 million.
The sources told APP here on Friday that there was a considerable jump in the export items like cotton yarn, cotton fabric, leather and seafood. The Early Harvest Programme (EHP) signed by the two countries last year will also gradually contribute to this upward trend, said Commercial Counsellor in Pakistan Embassy Shahid Mahmood.
The EHP is a mini-fast track and a prelude to the under-negotiation Free Trade Agreement, expected to be signed by the end of this year. Both Pakistan and China have increased market access for each other on items of significant commercial interests from January this year. It has provided duty free access to a large number of import-export products. Apart from this, a number of products are exportable by both counties at Margin of Preference in relation to MFN duty rate. In this way they enjoy concessionary duty rate in comparison to exports of same products from other countries.
When asked to comment on the future prospects of Pakistan's trade with China, Shahid Mahmood said, we are confident that the strong growth that we had in our exports to China last year would continue in the coming months.
Pakistan's export to China is likely to cross the $1 billion mark by the end of this year. The Chinese customs authorities had reported $832 million Pakistan's exports to China during the year 2005.
According to the sources, there is a great potential for enhancing the exports, particularly of valued-added textile products including cotton fabric, home textiles and towels. Chinese growing market also provides wide opportunities to Pakistani traders to enhance their export in non-traditional items like sports and engineering goods, handicrafts, marble, onyx, jewellery and agro-based products.
The trade volume will get a quantum jump in the coming months, when the list of export's items to China will also include sports goods, surgical instruments, rice, mango and some other agro-based products.
An official of the Chinese commerce ministry suggested that maximum number of Pakistani businessmen should visit China to explore new openings in the trade sector. Major exporters need to set up here their representative offices to introduce their products and find prospective buyers, he added.
The Chinese companies, he added enjoy official support at the government level to enhance economic interaction with their Pakistani counterparts.
"We welcome the Pakistani side to display their products at the annual trade fairs, used to take place in Chinese major cities," he added.