Pakistan’s export sector plays a significant role in economic growth. Realising the rapid and stable development of the export sector, Pakistan is committed to developing an export-oriented economy. Increasing export sales provides revenues and profit for business activities, leading to a rise in capital investment spending. Higher investment promotes a country’s productive capacity, increasing the potential for export.
The Chinese market is among the world’s largest markets, with a population of 1.4 billion people. It is one of the largest markets for Pakistan in terms of export destinations. Trade between both countries has expanded to include 75 per cent of zero tariff items. Such policy on national exports has boosted the balance of trade for the country.
Pakistan’s exports to China have crossed $67 million in the first two months of 2022, recording an annual increase of 23%. Both the economies are increasingly integrated, enhancing Pakistan’s export capacity. The progress on the construction of the China-Pakistan Economic Corridor (CPEC) and Special Economic Zones (SEZs) in Pakistan has increased Chinese enterprises’ investment. On account of growing investment from China, Pakistan’s export capacity has increased substantially.
If the bilateral trade between the two countries continues to grow at the current rate of 20-30% per year, Pakistan will soon become China’s main trading partner in South Asia.
Leave a Reply