Raza Khan

Pakistan China bilateral trade declined by 17% in July 2022 as compared to the same month of last year, the Ministry of Commerce reported. Trade between the two countries fell to $1.45 billion in July 2022 from $1.757 billion in the corresponding month of last year, according to the data available with WealthPK.

Pakistan China bilateral trade also declined by 23% as compared to the preceding month of June 2022 when trade volume was recorded $1.876 billion. Pakistan exports to China were registered $125 million in July 2022 against $194 million in the same month of 2021, showing a negative growth of 36%.

Imports from China also fell by 23% in the first month of fiscal year 2022-23, and reduced to $1.325 billion from $1.563 billion in the corresponding month of last fiscal. Pakistan’s exports to China declined by 50% in July 2022 when compared to the preceding month of June, while imports also posted a negative growth of 18% during the month under review against June.

Despite decline in exports and imports, China remained Pakistan’s largest source of imports during the month under review, followed by the United Arab Emirates (UAE) and Indonesia. China remained Pakistan’s fifth largest export destination in July after the United States, Germany, United Kingdom and The Netherlands, according to the Ministry of Commerce.

Dr Sajid Amin, Deputy Executive Director at Sustainable Development Policy Institute (SDPI), told WealthPK that ban on imports of luxury items by the Government of Pakistan and imposition of lockdown in various cities of China due to COVID-19 were apparently the primary reasons behind decline in bilateral trade in July.

However, Dr Sajid said that fluctuation in international trade during various months is quite normal, and there can be various reasons for that. “Numbers of bilateral trade vary in every month,” he added. Dr Sajid said that decline in Pakistan China bilateral trade in July was obviously not a good start of the new fiscal year, however; it would improve gradually.

“Pakistan has abolished ban on import of certain items and China has eased lockdown that would result in trade growth,” he maintained. Dr Sajid said that recent floods in Pakistan could result in reducing the exports of agro food products in coming months as the major crops like rice were swept away.

He also said that Pakistan needs to enhance its exports to China to reduce trade deficit. “It is not easy to reduce imports from China so Pakistan can increase its exports,” he maintained. He was of the view that Pakistani exporters should improve the quality of their products to get a larger share in Chinese market. “We need to bring innovations in products,” he added.

He said China Pakistan Free Trade Agreement (CPFTA) was more beneficial for Pakistani exporters than Chinese. “Consumers in Pakistan can buy quality goods with less price due to imports from China,” Dr Sajid said, adding that Pakistani consumers got highest welfare impact of the CPFTA.

According to Ministry of Commerce, with the bilateral trade volume of $19.457 billion, China remained Pakistan’s largest trade partner during the last fiscal year 2021-22. Pakistan’s exports to China were recorded at $3.111 billion in 2021-22, while imports were registered $16.346 billion.

Credit : Independent News Pakistan-WealthPk