By Raza Khan

ISLAMABAD, August 2 (INP-WealthPK): With the bilateral trade volume of $23.808 billion, China remained Pakistan’s largest trade partner during fiscal year 2021-22, according to Trade Development Authority of Pakistan (TDAP).  

Bilateral trade between Pakistan and China increased by 49.81% during last fiscal year as compared to the preceding year of 2020-21 when it was recorded at $15.892 billion.

Pakistan’s exports to China grew by 26% during the year under review and rose to $2.969 billion from $2.354 billion during FY21, TDAP reported.  

Pakistan’s imports from China were recorded at $20.839 billion during the last fiscal year, up by 36% against the preceding year when import volume was recorded at $15.297 billion.

China remained Pakistan’s largest source of imports in FY22. Imports from China during last year were the highest by Pakistan from any country during a single year. The United Arab Emirates (UAE) remained second, while the United States remained the third largest trade partner of Pakistan during FY22. Pakistan-UAE bilateral trade volume was at $11.832 billion during the last fiscal, while Pakistan-US trade volume remained at $10.465 billion, according to TDAP.

Pakistan’s trade deficit with China is gradually growing and stands at $17.87 billion in FY22, official data shows. Experts believe that enhancing exports is the best way for Pakistan to curtail mounting trade deficit with China.  

Dr. Sajid Amin, economic analyst and research fellow at Sustainable Development Policy Institute (SDPI), told WealthPK that Pakistan needs to enhance its exports to China to reduce trade deficit. “It is not easy to reduce imports from China, so Pakistan has to increase exports,” he maintained.  

He was of the view that Pakistani exporters should improve the quality of their products to get a large share in the Chinese market. “We need to bring innovations in our products,” Dr. Sajid said.

He said the China-Pakistan Free Trade Agreement (CPFTA) was more beneficial for Pakistani exporters than Chinese.

“Consumers in Pakistan buy quality goods at lower price due to imports from China,” he said, adding that Pakistani consumers get highest welfare impact of the CPFTA. 

Dr. Sajid said that China is the largest food market, and it carries huge potential for Pakistani exporters. “We simply need to improve the quality of food items to meet international exports standards to get healthy share in Chinese market,” he said.  

He was of the view that reducing imports from China is not simple because the local industry cannot meet demand in terms of quantity and variety.

“The CPFTA is a good agreement for both sides and Pakistani exporters need to take full advantage of it,” Dr. Sajid added. 

Pakistan’s top export commodities to China are cotton, copper, cereals, fish, crustaceans, aquatics invertebrates, oil seed, oleagic fruits, grain, seed, beverages, aluminium, apparel, salt, sulphur, plaster, lime, cement, and leather.

Pakistan’s imports from China are electrical and electronic equipment, machinery, nuclear reactors, boilers, pharmaceutical products, mineral fuels, oils, distillation products, organic chemicals, iron and steel, vehicles other than railway, plastics, fertilizers.

Credits: Independent News Pakistan—Wealthpk