ISLAMABAD: Pakistan and China have signed several memoranda of understanding (MoUs) for a hefty investment of $10 billion in four major export-oriented sectors signifying a robust commitment to the country’s economic growth.
The joint ventures (JVs) are aimed at establishing industries in key sectors including textiles, agriculture, food, and car spare parts manufacturing, Caretaker Commerce Minister Gohar Ejaz told Dawn on Saturday.
The MoUs were signed between the private sectors of the two countries.
For boosting exports to China, Pakistan is set to despatch its first shipment of fresh chillies from Karachi on coming Tuesday, according to the minister. This follows a protocol signed last October in response to China’s annual chilli import bill of $10bn. Pakistan plans to export chillies in three forms: fresh, paste, and powder.
Additionally, a protocol has been signed to export halal meat to China. In the coming weeks, Pakistan will commence shipments of boiled meat to China shortly, according to Mr Gohar.
During a recent visit to China, the caretaker minister revealed that the Chinese government has agreed to provide preferential access to Pakistani agricultural products. A list of these products, for which duties will be reduced under the free trade agreement with China, is being formulated and will be finalised in consultation with all stakeholders.
The China Chamber of Commerce for Import and Export of Textiles (CCCT) has also expressed support for increasing textile imports from Pakistan. The commerce ministry aims to shift 10pc of CCCT’s imports, which will contribute to an increase in overall textile exports to China. The total textile exports of CCCT currently stand at $320bn.
The minister has said that he plans to visit China on Jan 15 for subsequent discussions with Chinese investors. These potential investors are scheduled to visit Pakistan in February to deepen their engagement with local partners and finalise their investment plans in special economic zones.
Under the proposed joint ventures, there will be a complete Chinese investment. Investors in the textile, food, agriculture, and automobile parts sectors will add value to exports to China and other countries.
Furthermore, these investors can take advantage of the preferential market access under the Generalised System of Preferences Plus scheme to the European market. This presents a significant opportunity for exporters to gain duty-free access to European markets.
Mr Gohar revealed that a protocol has been signed with a Chinese investor to cultivate peanuts across 10,000 acres of the Cholistan desert. The peanuts will be exclusively grown for export purposes.
Published in Dawn, December 17th, 2023
