BEIJING, Feb. 22 (INP): Pakistan’s exports to South China have witnessed a significant surge of 16% during the year 2023, China Economic Net (CEN) reported on Thursday.
This remarkable achievement comes as a result of the strengthened trade ties between the two countries and Pakistan’s ongoing efforts to diversify its export market, said Muhammad Irfan, Trade and Investment Counsellor Pakistan’s Consulate in Guangzhou.
Muhammad Irfan told CEN that according to the latest data released by the General Administration of Customs of China (GACC), the total value of exports from Pakistan to South China reached a record high of $973.21 million from January-December of 2023, compared to $836.645 million in the previous year. This upward trajectory is a testament to the resilience and competitiveness of Pakistan’s export sector.
“Guangdong Province imported $379.011 million worth of goods from Pakistan in 2023, while Fujian Province imported $367.30 million.”
On the other hand, imports in the previous year were 248.532 million, up by 48%, followed by the Guangxi Zhuang Autonomous Region’s 86.790 million and $80.164 million, up by 8%, in 2022. In 2023, Hainan Province imported goods worth $85.883 million, with a 56% increase, and in 2022, its imports were $24.371 million, increased by 123% to $54.227 million”, he stated.
He further said that the surge in exports to South China can be attributed to various factors, including the preferential trade agreement between Pakistan and China, known as the China-Pakistan Free Trade Agreement (CPFTA).
This agreement has eliminated or significantly reduced tariffs on a wide range of goods, making Pakistani products more affordable and competitive in the Chinese market.
“Due to the significant participation of Chinese participants in two major events held in Pakistan, the Food & Agriculture Exhibition and TEXPO 2023, Pakistan’s exports to South China surged by 69% in the second half of 2023.
The key sectors contributing to Pakistan’s export growth in South China include textiles, leather products, seafood, and agricultural commodities.
Sesame seed, rice textiles, and garments, in particular, have witnessed a significant surge in demand, as Pakistani textile manufacturers have managed to produce high-quality products at competitive prices” Irfan mentioned.
He further said that the Pakistani government has also played a vital role in promoting exports to South China by providing various incentives and support to exporters.
These include subsidized loans, export financing schemes, and trade exhibitions to showcase Pakistani products in the Chinese market. Furthermore, the geographical proximity of South China to Pakistan has facilitated the smooth flow of goods, reducing transportation costs and time.
This advantage has allowed Pakistani exporters to deliver their products more efficiently and gain a competitive edge over other countries.
It is to be noted that the total exports of Pakistan to China from 2021-2023 increased by 1.4% on year-on-year basics.
Irfan added that the increase in exports to South China is beneficial for Pakistan’s economy and helps in bridging the trade imbalance between the two countries.
Historically, Pakistan has been heavily reliant on imports from China, and the export surge has helped to reduce this dependency and create a more balanced trade relationship.
INP/javed
