China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT) has agreed to facilitate Pakistan's largest textile sector for enhancing its expertise. "We have recently signed a Memorandum of Understanding (MOU) with Pakistan Readymade Garments Manufacturers & Exporters Association (Prgmea) to promote the bilateral trade particularly in textile and apparel and sector among two neighbouring countries," said Zhang Xinmin Vice Chairman CCCT, while talking to Business Recorder during his recent visit to Karachi.
Under the said agreement, both associations will also establish help desks in both countries for technical assistance, he added. He hopped that this development would help expend mutual economic and trade relations of the friendly countries and particularly textile sector.
He said that with this MoU, both associations will pursue the goal of promoting and expending communications and cooperation between Pakistan and Chinese textile and apparel companies in a bid to realise common development of industries within the ambit of law in both countries.
"Both associations will take up measures which are to support the development and implementation of cooperation between Pakistan and Chinese textile and apparel companies, besides making efforts for direct investments, joint ventures, marketing and designing partnerships as well as all other forms of bilateral cooperation," he informed.
Xinmin informed that promotion of trade and investment, exchange of ideas, exhibitions, exchange of information, support in business partner search, training, exchange of delegations and establishment of working group are some of major goals of the MoU.
Highlighting the features of the MoU he said that promotion of trade and investment cooperation would be top most priority of both the associations. "We are all set to put our best efforts into creating favourable conditions for bilateral trade and investment," he added.
"We will conduct exchange of ideas on the actual and future priorities of industries in both the countries. On the basis of mutual benefits and win-win progress, the associations will discuss and establish strategies and action plans of cooperation for development, and present relevant recommendations to the authorities in both the countries," Vice Chairman CCCT said.
In addition to exchange of information concerning policies, laws and regulations on trade and investment in each country, as well as the latest trends and updates on textile and apparel production, trade and investment, Prgmea and CCCT are also prepared to promote the participation of enterprises in fairs in Pakistan and China and to create favourable conditions for participation in such fairs. "We will also extend, within the scope of their means, assistance to Pakistan and Chinese enterprises when searching for business partners," he said.
To a question, Xinmin said that qualified and skilled workforce was necessary for competitiveness in the textile and clothing industry. Therefore, CCCT will help Pakistan to train their workforce for a better output.
On the occasion, Ijaz Khokhar, chairman Prgmea, informed that this was a milestone in the textile sector of Pakistan as a leading Chinese association had agreed to facilitate the Pakistani textile exports.
"In the emerging market, we need to enhance our production efficiencies by using latest technologies and the Chinese leading association will help us to do the same," he added.
He said that exchange of business delegations on a regular basis to explore new business opportunities among two countries was major part of MoU.
In addition, both associations were considering establishing a working group, which would be responsible for co-ordinating matters and it will consult on a regular basis either in person or via video conference to work out the practical details to facilitate cooperation between the parties.
Yearly, at Executive and General Secretary Level meetings will take place alternatively in Pakistan and China and the respective agenda will be orientated according to the current requirements of both parties and will be concretely agreed upon in advance of the meetings.
Khokhar said that presently, when the cost of labor was gradually increasing in China, Pakistan can facilitate Chinese industry by producing their products at cheap rates in domestic market.
He hoped that his agreement would bring more opportunities for Pakistani textile sector to find new export opportunities in Chinese market as some 12,000 companies were member of CCCT and operating in 34 provinces engaged in the production, exports and imports of textile products. Presently, trade balance is in favour of China with over $3 billion exports to Pakistan, he informed.
Chairman Prgmea said that Pakistan's textile sector was looking for such opportunities from the last few years and with signing of this MoU Pakistan's textile sector can take benefit of experienced Chinese industrialists.