Skip to main content

Trade with China

https://www.thenews.com.pk/print/279446-trade-with-china

Editorial

Listen

Betting our economic future on the China-Pakistan Economic Corridor was always going to come with a certain amount of risk. The infrastructure development required for various projects required Pakistan to take on loans from China to import capital goods that would eventually have to be repaid. The only way we can afford to repay these loans and reduce our growing trade deficit is by increasing our overall exports. Naturally, we are now looking to China, with whom we have a large trade imbalance, to be more receptive to Pakistani exports. The two countries have now reportedly finalised the second phase of the China-Pakistan Free Trade Agreement, which is expected to be signed next month and provides Pakistan with the same tariff concessions which are given to Asean nations. Our aim is an immediate increase in exports, something the country desperately requires as an engine of economic growth. In the 10 years since the first free trade agreement between the two countries was signed, overall trade has ballooned from $4 billion to $13.7 billion. In that time, Pakistan’s imports from China have increased $2.5 billion to $12 billion while exports to China have only gone from $570 million to $1.7 billion. Our worldwide trade deficit stands at almost $18 billion for the six-month period from July to December and will almost certainly be higher than the annual target of $25.7 billion projected by the government.

Since such a large percentage of Pakistan’s trade deficit is caused by trade with China, the revised free trade agreement should help in improving that. The Pakistan Business Council has estimated that tariff concessions could increase the country’s exports to China by more than $3 billion a year, although a more accurate estimate will only be possible once the details of the agreement are made public. While that would be a good start, it is not sufficient to come close to eliminating our trade deficit. Pakistan does need to try and get whatever trade concessions it can – be it from China or other countries – but the entire rationale behind taking loans for CPEC projects is that it would put the country in a position to massively increase exports. Should that not materialise, there will be serious questions asked about why we have indebted ourselves to such an extent for economic gains that are marginal at best. With the international price of oil continuing to rise, there is little opportunity to reduce imports and so the only economic strategy that makes sense right now is to maximise exports

Comments

Popular posts from this blog

CPEC Jobs in Pakistan, salary details

JOBS...نوکریاں چائنہ کمپنی میںPlease help the deserving persons...Salary:Salary package in China–Pakistan Economic Corridor (CPEC) in these 300,000 jobs shall be on daily wages. The details of the daily wages are as follows;Welder: Rs. 1,700 dailyHeavy Duty Driver: Rs. 1,700 dailyMason: Rs. 1,500 dailyHelper: Rs. 850 dailyElectrician: Rs. 1,700 dailySurveyor: Rs. 2,500 dailySecurity Guard: Rs. 1,600 dailyBulldozer operator: Rs. 2,200 dailyConcrete mixer machine operator: Rs. 2,000 dailyRoller operator: Rs. 2,000 dailySteel fixer: Rs. 2,200 dailyIron Shuttering fixer: Rs. 1,800 dailyAccount clerk: Rs. 2,200 dailyCarpenter: Rs. 1,700 dailyLight duty driver: Rs. 1,700 dailyLabour: Rs. 900 dailyPara Engine mechanic: Rs. 1,700 dailyPipe fitter: Rs. 1,700 dailyStorekeeper: Rs. 1,700 dailyOffice boy: Rs. 1,200 dailyExcavator operator: Rs. 2,200 dailyShovel operator: Rs. 2,200 dailyComputer operator: Rs. 2,200 dailySecurity Supervisor: Rs. 2,200 dailyCook for Chinese food: Rs. 2,000 dailyCook…

Balochistan to establish first medical university

https://www.dawn.com/news/1366135

The Newspaper's Staff CorrespondentOctober 25, 2017QUETTA: The provincial cabinet on Tuesday approved the draft for establishing a medical university in Balochistan.Health minister Mir Rehmat Saleh Baloch made the announcement while speaking at a press conference after a cabinet meeting.“The cabinet has approved the draft of the medical university which would be presented in the current session of the Balochistan Assembly,” he said, adding with the assembly’s approval the Bolan Medical College would be converted into a medical university.Published in Dawn, October 25th, 2017

Germany’s Siemens sets up Belt and Road office in Beijing

https://gbtimes.com/germanys-siemens-sets-up-belt-and-road-office-in-beijing
Germany’s Siemens sets up Belt and Road office in Beijingby Janne Suokas Mar 23, 2018 15:20 TRADEINVESTMENTBELT AND ROAD INITIATIVEGerman industrial and engineering group Siemens will set up a Belt and Road office in Beijing. surberFlickrCC BY 2.0
German industrial and engineering group Siemens will set up an office in Beijing to boost international cooperation under China’s Belt and Road initiative, the company said on Friday.The move will help strengthen Siemens’ cooperation with Chinese and international companies and expand business opportunities brought about by the Belt and Road initiative, according to the company’s statement.The Belt and Road initiative is China’s ambitious project to boost trade and infrastructure investment in more than 65 countries along the ancient Silk Road trade routes from Asia to Europe and Africa.Siemens said it had already partnered with hundreds of Chinese companies in overse…