Pak-China ink $382m agricultural deal

International Innovation Park Limited EPZ and China National Cereals, Oils and Foodstuffs (COFCO) signed an agreement to cooperate in the agriculture sector worth more than $380 million on Saturday at the China International Fair for Trade in Services (CIFTIS) in Beijing.

Pakistan's Ambassador to China, Khalil Hashmi, Ghulam Qadir Trade and Investment Counsellor, and representatives from the firms witnessed the ceremony. Khalil said on the occasion that "it is a milestone for Pakistan because Chinese companies are working with Pakistani firms to develop their products in Pakistan." He added, "When it comes to market access, Pakistan has preferential trade agreements with major global economies, including the European Union, the United Kingdom, and China through CPFTA. This allows many Pakistani products to enter these markets duty-free."

Liu Zhai, Senior Vice President of IBI and CEO Toodudu, and Naveed Asghar, Chairman and CEO of Waetz Asia signed a Memorandum of Understanding (MoU) to enhance cooperation in the textile sector, which will focus on digital transformation and supply chain optimisation for 200 textile factories in Pakistan.

Additionally, the CIFTIS has emerged as a pivotal platform, fostering enhanced financial cooperation between Chinese banks and their international counterparts, said Shaikh Muhammad Shariq, Vice President of National Bank of Pakistan (NBP) and Chief Representative in China on Friday. Addressing a seminar titled "Investment in Pakistan," Shaikh Shariq said that this year's fair not only showcases innovative financial services but also facilitates meaningful dialogues and partnerships aimed at strengthening global financial ties, particularly for NBP.

"As the NBP seeks to navigate an increasingly interconnected world, CIFTIS offers a unique opportunity to explore collaborative ventures that can drive mutual growth and stability in the financial sector," he added.

He mentioned that with a total asset base of $6.7 trillion ($23.6 billion) and accounting for 14% of total industry assets, NBP is the highest capitalised bank in Pakistan with $382.8 billion ($1.36 billion) in net assets.

It is to be noted that Shougang is the main venue for financial institutions to present their services in CIFTIS 2024, which is scheduled from September 12-16.

Federal Minister for Commerce, Jam Kamal Khan on Saturday also emphasised the strategic partnership between Pakistan and China, often referred to as "iron brothers." "While our economic partnership has grown significantly, particularly through initiatives like the China-Pakistan Economic Corridor (CPEC) and the China-Pakistan Free Trade Agreement (CPFTA), there is still vast untapped potential," he noted.

He also delivered a virtual keynote address at the Pakistan Investment Conference held during CIFTIS.