Chinese buying mission to visit Pakistan

[Shahzaz ud din]

Chinese buying mission to visit Pakistan
By Our Correspondent
Published: September 14, 2018
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Pakistan wants to enhance exports to China, global market. PHOTO: SABAH

ISLAMABAD: Adviser to Prime Minister on Textile, Commerce, Industry and Production Abdul Razak Dawood has underlined the need for enhancing exports from Pakistan to China as well as to the global market.

“It will require better access to the Chinese market,” he said while talking to Chinese Ambassador Yao Jing who called on the minister on Friday.

The adviser emphasised that in addition to strong political affinity, Pakistan and China enjoyed excellent trade and commercial relations bonded further by the signing of the China-Pakistan Free Trade Agreement in 2006.

He added that agreement on the China-Pakistan Economic Corridor (CPEC) opened another dimension to the ever-growing trade and economic relations between the two countries.

Jing announced that a Chinese buying mission would visit Pakistan. “Such buying missions will be of great importance for Pakistani exporters and the overall export growth of the country,” he stressed.

Dawood appreciated China for organising the China International Import Expo, which would be held in November 2018 in Shanghai, and expressed gratitude for declaring Pakistan as the “Guest of Honour” during the event.

Both sides agreed to work more closely to build a brighter and prosperous future for the region

 

[Cybernetics]

What goods does Pakistan want to see exported?

It would help a great deal to understand preferences from the exporter's point of view.

 

[Ishq Dewana]

Pakistan should export good quality meats to China.

 

[PaklovesTurkiye]

What goods does Pakistan want to see exported?

It would help a great deal to understand preferences from the exporter's point of view.

@FuturePAF @Indus Pakistan

 

[I.R.A]

What goods does Pakistan want to see exported?

Textile, cotton, stone, leather goods, sports goods, fruits, dry fruits, edibles, meat, dairy, sea food, salt, cutlery, cement, steel, software etc etc

 

[Mr ambassador]

Abdul Razak Dawood seems the best economic adviser. He is focusing on local industry and export . good sir , keep it up .

 

[Indus Pakistan]

What goods does Pakistan want to see exported?

It would help a great deal to understand preferences from the exporter's point of view.

As I am not resident in Pakistan and not read up on the specifics, I can't give you comprehensive list of the products. However I would certainly rule out steel, cement as the Chinese market is too distant and Pakistan does not enjoy sufficient competitive edge. The real problem that many ignore is the culture and practices in Pakistan. Both are not conductive to modern industry. We have precious few industries that can stand on their own feet. Most are just import subsitution franchises that survive on government protection or some other government patronage. For instance my brother might be a politician and he has contacts in Ministry of Interior who order special boots for the police. Instead of the order going abroad I set up a small unit in Karachi "Boot Industries" and sign a JV with a foreign boot company and sort of assemble them in Karachi. My unit is inefficient, product is shoddy and price is high but because of contacts I get the contracts. In four decades my unit never ventures beyond the monopoly and when government change I pay off money to retain the contract or I shut down and another 'industrialist' with contacts get's the contract. This type of industry can never operate on the global scene as it is simple uncompetitive. Just because you can sell in a hostage market does not mean the international buyer will purchase your goods.

The best example I can think ofto illustrate my point is cotton industry. Below is list of cotton producing countries.

Major cotton producing countries in 2014/15

• China: 33.0 million bales
• India: 27.0 million bales
• United States: 18.0 million bales
• Pakistan: 10.3 million bales
• Brazil: 9.3 million bales
• Uzbekistan: 4.6 million bales
• Australia: 1.9 million bales
• Turkey: 2.8 million bales
• Turkmenistan: 1.6 million bales
• Greece: 1.4 million bales

Pakistan is 4th on the list. Most of the cotton is grown upcountry in Punjab and some in Sindh. While Pakistan would really need to be hyper-competitive to sustain a global steel industry because of almost zero inputs in the country [no iron ore and little coal] one would think Pakistan has all the ingredients to end up with world class cotton industry that matures up the value chain. Yet I go to my local high end store in UK to buy premium quality cotton rich shirt being retailed for £40 and it will be from Turkey, Egypt or increasingly Bangladesh. Then I go to the lower end Primark shirt being sold for £6 it will inevitably be from Bangladesh. Pakistan is to be seen no where. With the 4th largest cotton production and nearly 70 years of protection you would think Pakistani cotton products would rule the global markets. But that is not the case. Instead Bangladesh a country that produces almost zero cotton has become a major garment producer with exports that now possibly exceed Pakistan's. Instead most of the cotton is exported from Karachi port in raw form to countries like Bangladesh who then process/add premium to it by exporting as shirts etc.

The question we need to ask is why does Karachi not have mile after mile of garment plants that recieve cotton from upcountry and then it is manufactured into shirts etc and exported from the port to world markets? The reason is culture, practice and politics.

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[FuturePAF]

@FuturePAF @Indus Pakistan

Studies have shown Pakistan can be competitive in Pharmaceuticals and value added agriculture with investment, as the Israelis do in these two areas.
(https://profit.pakistantoday.com.pk...a-industry-suffers-from-governments-shackles/)
China plans to make Gwadr an "Oil City"
https://nation.com.pk/22-Jan-2018/mega-oil-city-to-be-developed-at-gwadar
Refineries here and along the coast can supply the petrochemical industry to make byproducts cheaply, and export them via rail through Iran and Turkey into Europe cheaply. Plastics, Pharmaceuticals, and other petroleum products.

switching over to the standard gauge railway will also help make freight trains a more efficient way to ship through Iran or eventually to Xinjiang in China for shipment to the Chinese coastal regions.

SOME VERY IMPORTANT POINTS: We need to make absolutely sure that any future deals, and the renegotiated deals are at the lowest possible interest rates, and have risk sharing agreements with china (they build a factory, and if the factory does good, both benefit, but if the factory does poorly both equally suffer); as this will insensitize Chinese investors to push their government to all Pakistani products to be exported to china with sustainable growth. In 9 months to 3 years from now a major economic collapse on a global scale may happen, and if we don't have markets to sell to, we will be stuck with debts we can't pay. Pakistan will have the most growth potential hopefully by then, and we can get a lot of the redirected money to come to us. That risk for Pakistan needs to be factored in. Further the protections for the farmers need to be in place. Investments in Farms by foreign companies can not erode the fertility of the land as one farmer pointed out. It can not overly use water for low value crops for export, like Saudi does in America for their diary feed. locking in farmers to use one processing center should also be prevented. farmers rights need to be protected so that if a better service comes along they can choose, and the foreign investors will have to keep up to keep their contracts. WE NEED TO PROTECT OUR FARMERS.

The Chinese P2P lending network is collapsing, it may be like the subprime mortgage collapse that happened exactly 10 years ago today. Chinese people will try to rescue their money and need a place to invest. WE NEED TO DO OUR OWN HOMEWORK ON HOW TO MAXIMUM UTILIZE THESE INVESTMENTS TO OUR BENEFIT. CHINESE INVESTOR WILL MAKE A PROFIT, BUT NOT AN INSANE AMOUNT AS PER THE CURRENTLY NEGOCIATED CPEC INTEREST RATES OF 34% AT POWER PLANTS.

The west is strict and puts limits on Chinese investors, we have to do our own research and not think they will come save us. the investors are not the Chinese government, they are just businessmen trying to make the most money as fast as possible. We need to negotiate hard, we are the best growth potential market for chinese investors, we need to think of our needs.

watch this guys videos to understand Chinese culture and Chinese people

THERE IS ANOTHER VIDEO WHERE HE SAYS CHINESE PEOPLE CARE A LOT ABOUT MONEY, THEY DON'T WANT TO GO BACK TO BEING POOR.

I am not trying to be offensive or ungrateful to Chinese people, but IF we make sure investments are done with proper protections for Pakistani people, Pakistan can be a long term investor for Chinese people. It will not be the quick money projects that happen in China. This is good for China in the Long term.