Consul general believes exports to China will jump $3-4b in next few years. PHOTO: CHINA.NET
Reporter: According to the statistics, Pakistan’s exports to Sichuan, Yunnan, Guizhou, and Chongqing increased by 132% last year. These are the consular districts of Pakistani Consulate General in Chengdu. Could you please tell us what happened?
Consul General: First of all, I think this is something extremely good. The quality of Pakistan’s products is getting better. Pakistan’s learning curve is also getting better because of the China-Pakistan Economic Corridor (CPEC), and our problem of energy shortage has been resolved gradually. I think a number of factors and supports form the present situation.
I must tell you that the Sichuan provincial government, China Council for the Promotion of International Trade, Chengdu Chamber of Commercial Services and a lot of major business houses have been deeply engaged in. All those critical factors brought Pakistan in the limelight in Chengdu, which boosted the country’s public image. Chinese businessmen, who are interested in Pakistan, began to learn Pakistani products and their international competitiveness, through which plenty of information becomes gradually known.
(Last year, the growth rate of China-Pakistan trade volume was about 12.8%).
Consul General: I think we effectively took full advantage of the media. In addition to interviews from Chinese and Pakistani media, I also gave interviews to chambers from Pakistan and Sichuan. They became closely connected to each other, and connect hundreds of people, if not thousands of people. Then ideas exchanged, a trust built among people and trading communities.
(So, chambers take a role?)
Consul General: Yes, absolutely. Ultimately, the private sector joined many authoritative business activities. So, I think the private sector of Pakistan, and some of the major private companies in this region – Chongqing, Sichuan, Guizhou – really made a very good impact not only on promoting trade but also on strengthening the connections between Pakistan and Sichuan.
Reporter: Could you please list the main categories of products Pakistan exports to the consular districts of Pakistani Consulate General in Chengdu? Any characteristics?
Consul General: Rice, cotton, yarn, chromite, other mining products, and made-ups. We are focusing a lot on beef exports because they have a lot of quarantine problems. Once the current problems have been solved, Pakistan’s beef can be exported to China.
And then there are surgical instruments. About two weeks ago, there was a dental exhibition in Chengdu, people from Pakistan also came. They sold well, although this is only the second year of selling surgical instruments from the Pakistani side. We introduced surgical instruments because it is a huge market and Pakistan has great expertise. Pakistani surgical instruments are sold all across Europe as they meet international standards. So, it is a good opportunity to introduce our products to China. This year’s sales figure of $25,000 was really considerable. I think it will increase by 10 times in the next five years.
(Last year, I saw Pakistani surgical instruments at China International Import Expo. In addition to the products themselves, they put much more emphasis on import license. What do you think of that?)
Consul General: In the Chinese market, it’s a very sophisticated issue, as many Chinese products are revolutionary and very good. Pakistani products have to be more competitive if they intend to tap the Chinese market, and Pakistani companies have to follow Chinese practices. I think as time goes by, Pakistani companies will know China’s specific implementation framework as more companies enter China. We have to go through the process of certification, and then the size of export will increase many times. Ultimately, Pakistani products will become more competitive, and they will meet all the certification standards in China.
Reporter: It is reported that last year Pakistan’s sales at the Kunming Fair ranked first in all exhibitions. Why?
Consul General: Yes, we participate in the Kunming Fair every year. At present, the sales are $800,000. Actually, every year, we invite traders from Pakistan to attend exhibitions. Maybe we have done better in publicity work.
(So you mean a lot of people know Kunming Fair because it has been done for many years?)
Consul General: Yes, we participate in the Kunming Fair every June. This year is no exception. We have been preparing since last month. So far, we have obtained the right to take 224 booths. All Pakistan exhibitors will use these booths to promote their companies and products. Last year, I went to CIIE and made a speech at the invitation of the Yunnan government. We have indeed done a lot of work in this regard.
Gwadar Port to see revolutionary changes
in a few years
Reporter: The Gwadar airport was newly launched in March. Whether the Gwadar airport or the newly signed second phase of FTA last month, do you have any expectations on the role they play in trade development?
Consul General: Of course, the airport is very critical for Pakistan, it’s going to be a very important element in the global supply chain, particularly for China. Previously, we sought cooperation; we went to other countries first, such as the Middle East. But once Gwadar Port becomes robust, it is going to create huge economic opportunity for Pakistan. So, I think that Gwadar, in that sense, is going to be revolutionary in a couple of years.
Now, a lot of facilities around the port are being developed. It will take a bit of time. But I think that our institutions in Pakistan are very focused on Gwadar Port and airport. The infrastructure building is the top priority. We are convinced that these projects have been successful, and we try to create more other opportunities in Gwadar. So that’s also a testament to Pakistan’s friendship with China. It will take time; all of these things are not going to happen tomorrow.
(I talked with several Chinese businessmen. They told me that Balochistan is not as safe as Lahore, maybe not even as much as Karachi. So even though it is said that there are lots of mineral resources and agricultural products, people dare not come to this place.)
Consul General: They will start coming. Economic development has its own logic. So once poverty is reduced, people will have more incentives. At the time, things will get better.
(The new FTA grants 313 zero-tariff items for Pakistan to export to China in April)
Consul General: Pakistan will have access for rice, textile and leather products to the Chinese market. In many cases, the tariffs have been significantly reduced in Pakistan. I think we will see a jump in Pakistani exports next year and the years after.
(So do you have any predictions about the increase?)
Consul General: Well, I haven’t done any data analysis so far. Frankly speaking, I was busy over the past two months. But I have read some of the things related to FTA. I think we will have a jump of $3-4 billion in the next few years.
This article originally appeared on the China Economic Net
Published in The Express Tribune, May 27th, 2019.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ