In recent years, with the rapid progress of the construction of China-Pakistan Economic Corridor (CPEC) and Special Economic Zones (SEZs), Chinese enterprises, especially private small and medium-sized enterprises, have significantly increased their investment in Pakistan. The economies of the two countries are increasingly integrated, thus continuously enhancing Pakistan’s export capacity. Under such circumstances, Pakistan’s exports to China have continued to grow substantially, according to an article published by China Economic Net (CEN).
The statistics released by the General Administration of Customs of China show that Pakistan’s exports to China crossed $ 67 million in the first two months of 2022, which recorded a nearly 23% year-on-year increase. As a matter of fact, the growth of Pakistan’s exports to China is only a good start. There is still great potential for bilateral trade, especially for Pakistan’s exports to China. It said, China is a country with a population of more than 1.4 billion. It is not only a global exporter, but also a global importer. China and Pakistan are friendly neighbors connected by rivers and mountains and have convenient transportation channels. Therefore, China is naturally a huge market for Pakistan.
If the bilateral trade between China and Pakistan continues to grow at the current rate of 20-30% per year, China will finally become Pakistan’s largest export destination, and Pakistan is likely to become China’s main trading partner in South Asia in the future. Over the years, Pakistan has been committed to developing an export-oriented economy. To realize the rapid and stable growth of exports to China, both China and Pakistan need to make further efforts. For Pakistan, first, it is necessary to ensure social stability and security, so as to create favorable conditions for CPEC and SEZ continuous expansion and the rapid development of its economy.
Second, Pakistan should accelerate industrial modernization and accomplish the industrialization of agriculture science and technology. China is now the largest importer of agricultural products in the world. If Pakistan’s agricultural products reach a high-quality level, China can import as much as Pakistan has.
Third, the two countries make joint efforts to accelerate the transfer of Chinese capital, technology and industries to Pakistan, so that China’s achievements in rapid economic development over the past few decades can quickly spill over to Pakistan and help Pakistan improve its export capacity. As both the Pakistani and the Chinese authorities, at a recent interaction, had reviewed progress on Special Economic Zones, they had a common notion that SEZs would help boost economic activity in the country, generate employment opportunities and earn foreign exchange.
Overall, the official said that all the notified SEZs together in across the country, account for approximately 10,029.64 acres of industrial land out of which 5,220.62 acres (52%) have been allotted to investors for setting up of industry with planned investments of Rs. 633.9 Billion, 43.6% of this comprises of FDI component (USD 1.73 Billion). It is also significant to mention that under the SEZ Act 2012, a zone enterprise is obligated to start construction within six months and to get into commercial production/operations within 24 months of its approval, whereas title to land is to be transferred only after it has performed regular operations for six months.
Experts believe that China Pakistan Economic Corridor is a rare opportunity for Pakistan to boost its economy and overcome deepening economic recession. Since, the country is facing trade deficit, depleting reserves, downing rupee value and number of other challenges; this initiative can turn things around leading the country to economic stability. They also expect from the upcoming government to fully focus these projects so the country could be able to reap the benefits of this historic project between China and Pakistan at the earliest possible.
