ISLAMABAD: Prime Minister's adviser on commerce and industries, Abdul Razak Dawood has said China has entered into an economic recovery phase after successfully overcoming Covid-19 outbreak at home.
"The Chinese economy is recovering after coronavirus shock and the stabilisation of its economy will also benefit Pakistan in a big way in the China-Pakistan Economic Corridor (CPEC) and other business sectors, he said while talking to a local TV channel on Thursday night.
"The (tariff reduction arrangements of the) second phase of Pakistan's Free Trade Agreement with China is operational since Jan 1, and we are hopeful that the moment the Chinese economy is back on its original trajectory, our exports to China will also increase," the advisor added.
Pakistan's economy to contract only modestly
Speaking about the impact of the novel coronavirus on the Pakistani economy, Dawood said that the virus has adversely affected the economy as a 70 per cent decline in the country's exports has been witnessed in April as compared to last year, and the country is feared to lose an estimated 3 to 4 billion US dollars due to the decline in exports.
"There is no doubt that the Pakistani economy is in a critical condition, but there is still a hope as in the past few days we have started receiving some export orders, and we are hopeful that the orders will gradually increase and the economy will get a significant support from this sector."
Besides, the IT sector of the country has also got a boost during the lockdown period and IT-related companies are working with the outside world and within the country, Dawood said.