Pakistan’s exports to China see 5.16% growth in two months

During the initial two months of the fiscal year 2023-24, Pakistan observed a notable surge of 5.16% in its export of goods and services to China, as per the State Bank of Pakistan (SBP). This growth is in comparison to the exports during the corresponding period of the previous year.

SBP data reported that the total exports to China for July-August in the year 2023-24 amounted to $350.297 million, surpassing the $333.077 million recorded for the same months in the year 2022-23, reflecting a 5.16% increase.

This boost in exports can be attributed to the Free Trade Agreement (FTA) signed between Pakistan and China back in 2006. This agreement granted Pakistan access to the Chinese market with zero tariffs on various products such as industrial alcohol, cotton fabrics, home textiles, marble, leather, sports goods, fruits, iron, steel, and other engineering goods.

China reciprocated by reducing tariffs by 50% on items like fish, dairy products, plastic goods, knitwear, and woven garments.

While over 50% of Pakistan’s exports come from the USA and the EU, China’s contribution stands at 9% of Pakistan’s total exports. Notably, the textile sector plays a crucial role, accounting for over half of Pakistan’s total exports.

Cotton yarn and rice are the major drivers of Pakistan’s exports to China, contributing 24% and 17% of the total exports to China, respectively.

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