China and Pakistan, two brotherly nations celebrating the 70th anniversary of their diplomatic relations, are continuing to cultivate their relationship with the 2nd phase of the China-Pakistan free trade deal, finalized in 2019.
As per Chinese Customs, Pakistan's exports to China in the first half of 2021 amounted to $1.73 billion, an unprecedented growth of 84 percent. It is generally hoped the number for all of 2021 will surpass the milestone of $3 billion.
These figures show the second phase of the trade agreement has effectively started, enhancing bilateral trade regarding imports and exports by facilitating Pakistani businesses to enhance their economic presence in the Chinese market. Under the new phase, Pakistani manufacturers and traders are allowed to export around 313 new products to the Chinese market with zero duties.
The significant increase of Pakistani exports to China has opened up a Chinese market that also shows the growing popularity of Pakistani products.
Increased Pakistani exports to China have diversified the country’s trade potential and laid the foundation of maintaining trade balances with the world’s second-largest economy.
In a recent report by the World Bank, is was estimated Pakistan has the potential of increasing its annual exports to above $88.1 billion.
Under the leadership of Prime Minister Imran Khan, the country has consistently made policy to promote the extension of exports to the world market.
To that end, the government has adopted business-friendly policies and provided huge financial incentives to enhance imports.
Along with these policies, the government has also finalized free trade agreements with other countries like China.