Pakistan’s Interim Commerce Minister, Gohar Ejaz, spearheaded a crucial delegation to China, presenting a series of strategic requests aimed at fortifying economic ties between the two nations. The foremost proposal involves amending the existing Free Trade Agreement (FTA) between China and Pakistan. The intended revisions seek to align Pakistani products more favorably with the China-ASEAN agreement, potentially enhancing market access and preferences for Pakistani goods within China.
Moreover, Pakistan’s plea for trade finance in yuan worth $5 billion aims to reduce dependency on the US dollar, thereby mitigating currency risks and fostering smoother trade operations between the two countries. This move showcases Pakistan’s intention to diversify its currency reserves, fostering more stability in its international trade transactions.
Simultaneously, the proposition to allocate $5 billion in yuan for financing investments, specifically targeting the relocation of Chinese companies to Special Economic Zones (SEZ) or Export Processing Zones (EPZ) in Pakistan, underscores the nation’s eagerness to attract foreign investment and bolster its industrial landscape. This initiative not only facilitates economic growth within Pakistan but also signifies a deeper collaboration between the two countries, paving the way for enhanced economic cooperation and potential long-term partnerships.
Overall, these strategic requests made by Pakistan signify a concerted effort to strengthen economic ties with China, diversify trade currency, attract foreign investment, and align trade preferences to foster mutually beneficial economic growth for both nations.
