ISLAMABAD: Pakistan has requested China to consider the relocation of export oriented Chinese industries in Pakistan.
According to the ministry of commerce, China has been requested to consider the relocation of its export oriented industries of the sectors like garments, solar panels, mobile phones, electrical equipment, electronics and food processing.
China has agreed to share the same with the relevant authorities to facilitate the relocation.
It is pertinent to mention here that China Pakistan Free Trade Agreement, covering goods and investment, was signed on 24th of November-2006 and implemented from 1st of July 2007. Under the FTA, concessions were obtained in the raw materials and intermediate goods so that Pakistan could become part of the Chinese value chains.
As a result, exports of Pakistan increased from $575million in the year 2006-07 to $1463million in 2016-17 registering an increase of 154%. Presently, the ministry of commerce is negotiating a 2nd Phase of the FTA. The focus is on exchang concessions in such areas where the strengths of the two countries complement each other thereby encouraging intra-industry trade.
Furthermore, concessions are also being requested in Chinese “Sunset” industrial sectors which would incentivize Chinese investors to relocate their production facilities in Pakistan. During the 8th round of negotiations of the 2nd Phase of CPFTA held on September 14-15, 2017 in Beijing, Pakistan side made a detailed presentation on the investment opportunities in Pakistan and highlighted the incentives available under various schemes. The Chinese side appreciated Pakistan’s proposal and hoped that investment in Pakistan from Chinese companies may be increased in near future.