Enhancing Sino-Pak economic ties
Source : The News Date : April 08, 2013
 |
The symbiotic relationship between Pakistan and China is characterised by geo-political and geo-strategic cornerstone for both countries that transcend diplomatic relationships Pakistan has with any other sovereign state.
A cursory look at the history of Pak-China relations beginning from 1951 to-date, would give a fair idea that notwithstanding the changing global scenarios, these relations have continued to flourish. Beijing’s assistance to Pakistan has been free of strings, timely and in fields that are vital to our sovereignty and survival.
The Chinese economic assistance has been invaluable in areas as diverse as construction of nuclear power plants, dams, roads and industrial, Heavy Mechanical Complex, the Kamra Rebuild Factory, cooperation in satellite technology, expansion of Karachi Shipyard, the Karakorum Highway, the Chashma Power Plant and the Gwadar deep seaport. Pakistan, too, can reciprocate by helping in China’s growth for opening energy supplies lines/routes from the Gulf to China.
China’s decision to finance the construction of Gwadar Port and coastal highway linking the port to Karachi will help its plans to develop western China. The cost benefits to China of using Gwadar as the port for western China’s imports and exports are as evident as the long-term economic benefits to Pakistan of Gwadar becoming a port for Chinese goods.
Beijing has agreed to spend hundreds of millions of dollars to finish a 900-kilometer road that would link the port with Pakistan’s north-south Indus Highway, facilitating overland transport from Gwadar to China.
Pakistan and China enjoy good trade relations. Under the five-year Development Programme for Economic and Trade Cooperation (DPETC), 36 projects valued at $14 billion covering energy, transport, information and communications technologies, industrial, agricultural, health care and education sectors have been identified.
Since 2008, the total volume of trade between the two countries has grown by 70% and Pakistani exports to China increased two-folds from $1 billion to $2.2 billion during the same period. More than 11,000 Chinese engineers, technicians and workers are rendering their valuable services in progress and development of Pakistan.
However, an imbalance in the export-import between the two states to the tune of $3.14 billion against $9.2 billion in favour of China needs to be reduced.
The Chinese government is planning to send official purchase missions to Pakistan to enhance our exports, while Pakistani traders are attending China’s trade and investment expos and fairs in larger numbers. In a conference on “Pakistan-China Economic Cooperation with special focus on Thar Coal, Kashgar Special Economic Zone and Gwadar Sea Port” organised by the Islamabad Policy Research Institute (IPRI), it was discovered that procedural delays was the sole reason in stalling progress of economic cooperation between Pakistan and China.
China Investment Corporation (CIC) President Gao Xiging stated that Pakistan has very good potential in different fields and China is also giving new face to its industry with sector diversification. However, some of the factors that are hindering in improving trade-deficit between Pakistan and China: 1) Infrastructure technological deficit in the field of energy and excavation of natural resources like gold, cooper, etc, 2) Low level of labour productivity, 3) Low levels of manufacturing capacity value addition, 4) Little Foreign Direct Investment (FDI) in manufacturing and exportable sectors, 5) Increasing costs of exports as compared to imports, 6) Pakistani businessmen’s ‘go west policy’, 7) Non-exportation of sports and surgical item, 8) Lack of survey/research-based policies in locating markets, 9) Slow in implementation of decision, 10) lack of contractual and negotiational proficiency.
The established cooperation basis should be solidified. The cooperation in such fields as agriculture, finance, science and technology should be expanded and the cooperation in new fields continuously sought, such cooperation means as joint venture, sole foreign ownership, lease, training and contracting explored actively so as to inject new vitality to China-Pakistan economic and trade relations.