BEIJING: Although Pakistan’s trade deficit with China has declined in recent years, it may still be an important factor affecting the sustained and healthy development of bilateral trade.
Since the first phase of the China-Pakistan Free Trade Agreement came into effect, bilateral trade volume has increased from USD 2.2 billion in 2005 to USD 15.6 billion in 2019. However, 75% of Pakistan’s exports to China are concentrated in a few products such as cotton and rice, leading to a large export deficit with China.
Agriculture is the main driving force of Pakistan economic growth, and the export of agricultural products is the largest source of Pakistan foreign exchange income. The Chinese government has always encouraged the expansion of trade with Pakistan, hoping to import more goods from Pakistan, especially agricultural products. But by contrast, Pakistan’s agricultural products still show a slight disadvantage in the competition of similar products in the international market.
Touching on this issue, Ma Xiaoyan, Chairman of UNI International Business Consultancy Co Ltd who has been engaged in business management for 15 years in Pakistan and has worked in a local family business with a history of 170 years for 8 years, said that Pakistani entrepreneurs must take a global and international perspective in their business practices.
Starting from the cultivation of agricultural products, they should change the original rough production methods, introduce international market quality certification systems and quality control standards, research the target consumer groups, understand the needs of consumers, and improve food formula to meet the consumption habits of consumers, Ma said. In addition, they can seek Chinese partners, who are mainly responsible for the control of production technology, product quality and sales market. They can vigorously develop the huge potential consumer market in China with the help of the China-Pakistan free trade policies, Ma said.
As a typical agricultural country, Pakistan has a relatively high proportion of agriculture and service industries in its industrial structure, and its industrial development is insufficient. – Agencies
