In 2010, the total volume of Pakistan-China bilateral trade registered an overall growth of 28% and has reached the US$8.7 billion mark. Masood Khan, Pakistan’s Ambassador to China, welcomed the swift increase in the volume of bilateral trade. In 2009, Pakistan-China trade was US$6.7 billion, according to fi gures released by China Customs. Total Pakistani exports to China in 2010 were US$1.7 billion compared with US$1.2 billion in 2009. Last year, from January to December, Pakistan’s exports to China increased by nearly US$500 million. T e most remarkable growth has been in Pakistan’s exports which increased last year by 37.44%; while imports from China also grew by 25%. Now, Pakistan is China’s second largest trading partner in South Asia.
T e recent trend of growth in Pakistan-China bilateral trade has put the two countries on a fast track to achieve this target. T e Pakistani Ambassador said: “T e trend seems to be pretty stable, despite the encouraging growth pattern, we will not sit on our laurels. There is a long way to go, we want to reach the US$15 billion mark and move beyond it in the near future.”
In 2010, the biggest areas of growth in Paki-stani exports to China were cot-ton yarn, home textiles, garments, ores and mineral products, copper and copper scrap, leather goods, fish products, electri-cal goods, and medical and surgical instruments. While, Pakistan’s imports from China also increased by US$1.4 billion and the total volume of imports from China stood at US$6.9 billion. T e trade defi cit for Pakistan right now is approximately US$5.2 billion.
T e two governments have agreed on a series of measures to reduce the trade defi cit. In this regard, China will be sending purchasing missions to Pakistan to identify suitable Pakistani products for the Chinese market. Also, Pakistani traders and businessmen will be attending major trade exhibitions in Kunming, Guangzhou, Urumqi, Kashghar, Dalian and Beijing. T e two sides have also decided to hold seminars and to enhance visa facilitation between the two countries. Pakistan has requested that China give unilateral tariff concessions on 268 of its product lines. If these concessions materialize, Pakistani exports to China will increase even more rapidly. Pakistan has also proposed to China that they develop of an effi cient Electronic Data Interchange (EDI) to realize the full potential of the FTAs.
Pakistan’s exports to China include cotton yarn and fabrics, synthetic yarn and fabrics, garments, home textiles, chromium and other ores, fi sh and fi sh products, vegetable and animal products, marble, granite and stone products, medical instruments, sports goods, carpet, etc. From China, Pakistan imports, polyester and silk fabrics, polyester staple fabrics, fertilizers, tires, mobile communication equipment, gas turbines, motorcycle parts, combustion engines, electrical appliances, iron and steel products, and various forms of machinery.