As a result of all-weather strategic partnership, the second phase of China-Pakistan Free Trade Agreement allowing the Pakistani manufacturers and traders to export around 313 new products on zero duty to the Chinese market.
The second phase of the China-Pakistan Free Trade Agreement (FTA) is expected to further bridge the trade deficit between the two countries by boosting Pakistani exports to China. China will implement tariff reductions or exemptions for cotton yarn, leather, clothing, aquatic products, nuts and other export goods from Pakistan under the upgraded FTA.
It is hoped that a significant lowering in tariff levels between the two countries will deepen trade ties by cutting the deficit, thus effectively promoting the construction of the Belt and Road Initiative and the development of the CPEC.
Under agricultural cooperation, China and Pakistan will seek cooperative efforts aimed at reducing the trade deficit. Agriculture is a pillar industry of Pakistan’s economic development, accounting for about 40 percent of its economy, while China is now the world’s largest importer of agricultural products.
Pakistani exporters are eager to enter the huge Chinese meat market, China Economic Net. China has been importing meat from Vietnam, Brazil and Australia to meet domestic demand. Pakistan has a considerable share of the Halal market and is in a good position. Pakistan has a relatively developed livestock industry and is the fourth largest meat producer in the world in terms of total livestock production. Pakistan’s meat is currently mainly being exported to Gulf countries, Vietnam and Malaysia.
China, aiming to inspect its advanced product technology and suitable supporting equipment to better serve the local agricultural development.
If our traders actively participate in different trade fairs in China to market their goods, they can get import orders with good price. Now not only Pakistani manufacturers can enhance exports of different goods to China but the Chinese manufacturers who are interested to shift industry to Pakistan owing to cheaper labour and other resources, can export goods to China and other countries in the world.
US based magazine Bloomberg, reports that Pakistan stocks have outperformed the world’s leading stock markets during last three months due to government’s steps to stabilize economy.
The latest report of Bloomberg, during previous three months, Pakistan’s stock market surged by 30 percent while Ireland’s stock market increased by 20 percent followed by Russia’s RTS index with a positive change of 15 percent.
The report said that Pakistan’s KSE-100 Index has advanced to the highest level in seven months. The development comes as a result of measures taken by the government to stabilise the economy.
Pakistan Stock Exchange (PSX) crossed 40,000 mark after a gap of around 10 months as the KSE-100 Index closed at 40,122 points with a positive change of 836 points.
Pakistan has decided to auction 35 offshore sites next month for drilling to find oil and gas reserves in a major move to step up hydrocarbon production and meet growing demand.
Pakistan Water and Power Development Authority signed a contract worth Rs52.5 billion with the joint venture of GE Hydro China and Power China Zhongnan Engineering Corporation for starting electro-mechanical works on first stage of the Dasu hydroelectric power project.
BYD the Chinese multinational company and world’s largest electric vehicles manufacturer with turnover of $250 billion, is all set to enter Pakistan.
The improvement in the outlook is highly expected to revive foreign investors’ confidence in Pakistan, compelling them to pour-in significant amounts in different sectors of the economy like manufacturing, agriculture and exports and portfolio investment in stocks and debt markets.
Asad Umar calls for timely ground breaking of CPEC project. Federal Minister for Planning, Development and Special Initiatives Asad Umar has directed the officials to ensure the groundbreaking of first special economic zone (SEZ) project under China-Pakistan Economic Corridor (CPEC) in Faisalabad before the end of the current year. Special Initiatives, work on two SEZs projects had expedited including Rashakai and Dhabeji with an aim to achieve their groundbreaking in the current year.
It can contribute more to the construction of China-Pakistan Economic Corridor and China-Pakistan friendship. New phase of CPEC, focus would be given on enhancing economic cooperation whereby business linkages and value chains would be developed, benefiting both sides. About 575,000 direct and over 1 million indirect jobs would be created in the second phase of CPEC. Moody’s upgrades Pakistan’s outlook to ‘stable’ from ‘negative’.