Strengthening Pakistan-China Industrial Collaboration: CPEC's Game-Changing Impact, Ambassador Yao Jing Emphasizes
The global trade landscape has been significantly disrupted by the COVID-19 pandemic, with China-Pakistan trade cooperation also feeling its effects. Nevertheless, Chinese Ambassador to Pakistan, Yao Jing, holds unwavering confidence in the future of their bilateral trade relationship, largely thanks to the China-Pakistan Free Trade Agreement Phase-II (CPFTA Phase-II).
In an interview with the China-Economic Net, Ambassador Yao highlighted the mutual support between China and Pakistan during the pandemic, progress made on the China-Pakistan Economic Corridor (CPEC), business and trade collaboration, and their united efforts to combat locust swarms. He described their cooperation in battling COVID-19 as an exemplary model of international collaboration, emphasizing the strength of their enduring strategic partnership.
P.c. China-Pakistan Economic Corridor
CPFTA Phase-II, initiated on January 1, 2020, brought about a substantial increase in trade liberalization between the two nations. Tariffs were drastically reduced, and the percentage of mutually tariff-free products surged from 35% to 75%. Under this agreement, 90% of China's imports from Pakistan now enjoy duty-free status, while Pakistan benefits from zero tariffs on 67% of its trade volume.
Ambassador Yao remained optimistic about post-pandemic economic recovery, anticipating the release of pent-up market demand and a robust resurgence in bilateral trade.
Regarding the impact of CPEC on the livelihoods of Pakistanis and its potential to engage third parties, he emphasized that CPEC is a pivotal project under the Belt and Road Initiative (BRI). Over the past six years, it has yielded substantial results in developing Gwadar Port, energy infrastructure, and Special Economic Zones (SEZs), directly employing more than 75,000 Pakistanis.
Ambassador Yao also discussed China's commitment to relieving Pakistan's debt burden, emphasizing their approach of equitable consultation and mutual benefit. He reiterated that China does not pressure financially struggling countries for debt repayment, especially in these challenging times when many developing nations, particularly low-income ones, face mounting difficulties.
In line with its vision of a shared future for humanity, China actively participates in international debt relief initiatives. The envoy expressed China's readiness to collaborate with Pakistan through bilateral channels, concentrating resources on combating the epidemic and stabilizing the economy.
Highlighting the tradition of mutual support between Pakistan and China, Ambassador Yao mentioned various infrastructure projects, including the Karakoram Highway, Pakistan Sports Centre, China-Pakistan Friendship Centre, and Gwadar Faquer School, which China has contributed to in past years. He underscored the importance of industrial development for Pakistan's self-sufficiency and balance of payments improvement, especially considering global industrial structural adjustments.
As global industrial structures evolve, Ambassador Yao revealed that China and Pakistan are committed to expanding their industrial cooperation, making it a central focus of CPEC's next phase. He cited progress, such as the franchise agreement for the Rashakai SEZ signed in April 2019, which has seen steady advancement despite the challenges posed by COVID-19.
The Allama Iqbal SEZ is progressing even faster, with eleven Chinese enterprises already involved, spanning diverse industries like manufacturing, chemical engineering, and smelting. Additionally, China and Pakistan are actively coordinating efforts for the development of the Dhabeji SEZ, signaling a promising future for their industrial collaboration.
Addressing China's support for Pakistan in combating the locust crisis, Ambassador Yao noted that the outbreak earlier in the year severely impacted Pakistan's agriculture and food security. Despite facing its own challenges during the early stages of the COVID-19 battle, China dispatched a team of locust experts to Pakistan in February. These experts conducted extensive field investigations in locust-affected areas and provided comprehensive policy recommendations for prevention and control.
During President Arif Alvi's visit to China in March, Chinese President Xi Jinping reaffirmed China's commitment to assisting Pakistan in its fight against locusts. This underlines the depth of the cooperation and mutual support between the two nations.