The revaluation of the Chinese yuan would benefit Pakistan's exports to China, which shows growth in the recent years, said economic experts in Beijing. However, Pakistan-China bilateral trade that has jumped to over dollars three billion last year, will receive a marginal unfavourable impact in terms of Chinese exports to Pakistan.
"Our exports to China will increase while our imports from there may decline because their products will get more expensive, while the price of our products will remain low," said a Pakistan trader Khalid Mahmood.
Pakistan's current exports to China worth around dollars 600 million is likely to get positive impact. Our products will become more competitive in the local markets, said Commercial counsellor Shahid Mahmood.
It will have negligible impact on overall bilateral trade. When asked to comment on revaluation of yuan, which is now up by two per cent against the dollar, he said prices of Chinese products in Pakistan might go up with a small margin. "However, we are expecting a positive impact on our exports to China," he added.
A Pakistani businessman Ali Haider said the prices of Chinese goods would be now more realistic and provide level-playing field for Pakistani exporters on global markets.
A Chinese exporter Li Yian said "Though it is difficult to say what the fallout will be in the long term, the revaluation of yuan, coming as it does after over a decade, is a good sign, as China has pegged the yuan against a basket of currencies this time instead being tied down to the US dollar."
China on Thursday ended its decade-old peg to the US dollar and let the yuan float against a basket of currencies China's decision to revalue the yuan and make it stronger against US dollar.
Some were upbeat about the move, saying it would give a definite advantage to Asian economy in terms of trade competitiveness, while others doubted a higher yuan would have any significant positive impact on trade.
Another Pakistani trader Mohammad Yaseen hoped a stronger yuan would help boost Pakistan's exports to China, because the country's products would be more competitive in terms of price.
It may attract our businessmen to enhance their trade to China, he said adding "it is also a good development towards on-going efforts bridging the deficit in trade, which is currently heavily in favour of China," he added.
According to experts, the appreciation weakens China's exports to the United States and European Union; that creates favourable conditions for similar Asian exports, especially garments, textiles and leather products.
Comments
Comments are closed.