President of Pak-China Joint Chamber of Commerce and Industry (PCJCCI) Shah Faisal Afridi has stressed the need for evolving a better strategy to review and empower the manufacturing sector besides recasting it according to trends in the Chinese markets to get full benefits of the Free Trade Agreement (FTA) with China.
PCJCCI president in a statement on Wednesday suggested that people from all chambers of commerce should be assigned a task to conduct market research relating to the items having duty free access in China so that such exportable items could be produced in more quantity, he added.
He further stressed the need for further exploring bilateral trade prospects. He was of the view that extensive marketing of Pakistani products is crucial therefore, ambassadors and consul generals' aggressive efforts to promote Pakistani products are imperative. Afridi said, "Opportunities of joint ventures exist in textile, agro farming, food processing, pharmaceuticals, engineering goods, etc.
There is enormous potential in energy sector and Chinese companies should come forward and invest in this sector. China can also help Pakistan in developing SMEs sector. More than 11,000 Chinese engineers, technicians and workers are rendering their valuable services in progress and development of Pakistan. Chinese investment in Pakistan increased manifolds in key sectors including port development, roads, railways, mobile telephones communication technology, hydro and thermal power, mining, electronics, and nuclear energy."
Statistics shows that Pakistan's imports from China reached US 6.71 billion dollars from 3.53 billion dollars, showing an increase of 90 percent since the signing of the FTA whereas Pakistan's exports to China reached to US 2.18 billion dollars in 2011-12 from 0.575 billion dollars in 2006-07, reflecting an increase of 279 percent. So the impact of free trade on revenue, due to trade creation or trade diversion is positive, which is of course encouraging sign. Therefore, it is projected if this trend of higher trade volume continues; there will be no revenue loss in future. Nonetheless, if there is any loss on revenue front it will be compensated through other gains in shape of more exports, cheaper imports, investments, job creation in local labour market etc, Afridi added.
Afridi proposed several measures to maximise the benefits from Free Trade Agreement (FTA) between Pakistan and China by creating conducive environment to attract more investment from China in industrial, agriculture and energy sectors.
He suggested that Pakistan should focus on modern techniques for maintaining better and market competitiveness. He further suggested that the government should make a comprehensive plan to diversify exports. Pakistan should ensure quality, efficiency and cost minimisation particularly in non-traditional manufacturing sector. He asserted that there is a dire need to focus on the manufacturing of non-traditional products because living standards of Chinese has increased and their new generation is more inclined towards innovative and latest trends.
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