Trade with China should benefit both countries, not one: Dawood
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ISLAMABAD: Adviser to the prime minister on industries and production Razaq Dawood on Wednesday said that the rising tension between the US and China over trade tariffs was a good sign for Pakistan as “it would place us in a better negotiating position”.
“The prime minister is visiting China on Nov 4 and we will take advantage of this situation by pitching our position as a trade partner,” Mr Dawood said, briefing the Senate Standing Committee on Industries and Production.
He said the government wanted trade to be more bilateral with China instead of the current unilateral position. Mr Dawood stressed for rationalising import regime to reduce duties over raw material so that the finished products become cheap and competitive.
Responding to a query from the committee’s chairman Ahmed Khan that Pakistani firms were not competent enough to meet the modern day requirements, the adviser to PM said that the main issue regarding award of government contracts was corruption.
“There is corruption and mal-intent in every deal,” he said, adding that it did not mean the engineering base was weak.
The advisor also spoke about the potential benefits and risks concerning the China-Pakistan Economic Corrider (CPEC). “Our industry should prepare to compete with those [risks] in the industrial zones of CPEC, but we will also ensure that our industries are adequately protected,” he said.
Referring to a power plant established under CPEC, Mr Dawood pointed out that even the ladder and furniture in that power plant had been imported from China. “This is not right. We need to provide opportunities for the local industry too,” he added.
He also criticised the Free Trade Agreement (FTA) with China and said that as a result of concessions granted to China under the agreement, Pakistan was becoming a trading nation.
The committee was informed that imports from China amounted to around $15 billion whereas exports to China from Pakistan were $1.5bn.
“I have asked the Chinese ambassador to raise the imports from Pakistan to at least $2bn. We have highlighted 330 tariff lines out of total 7,500 tariff lines of the customs where we need relaxations,” he said.
Published in Dawn, October 4th , 2018
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Oct 04, 2018 10:26am
".... even the ladder and furniture in that power plant had been imported from China." This explains in simple terms that Chinese "Aid" of USD 62 Billion under CPEC is in fact simply a line of Credit extended to Pakistan to buy Chinese products.Nothing wrong,except Pakistan does not have a say in what is to be imported even if domestic equivalent products are available and possibly at a lower price.The other is that the line of Credit comes with an interest rate, which many claim is significantly higher than international lending by IMF, ADB and OECD. Unless the Govt is transparent on the CPEC terms, these important questions will continue to undermine faith in the program.
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Oct 04, 2018 10:39am
Too litte too late
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Oct 04, 2018 10:43am
Great plan by PMIK. Good time to dictate our terms. China has to oblige and has no other choice. PTI is a boon to this nation.
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Oct 04, 2018 10:52am
Truth slipping out. China may not remain an Iron brother for much longer, if this continues.
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Oct 04, 2018 10:55am
China killed almost all Pakistani business, SMEs and industries. Pakistani jobs got exported to China and now Pakistan is importing Chinese goods.
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Oct 04, 2018 11:01am
China don't want any products from pakistan. They can make it themselves cheaply.
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Oct 04, 2018 11:01am
Dragon will accept import to $2 billion as can take more rice, wheat at cheap price but will increase exports to $20 billion. Ladder, furniture, all labor andeven soaps for Chinese employees, noodles, all came from China.
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Oct 04, 2018 11:03am
@Manjeet too much and in time. CPEC is a game changer but it needs competent people to negotiate it. Now PTI is realigning it so that our expectations are met. It takes a while to reach optimum level. All in good time.
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Oct 04, 2018 11:05am
@Manjeet: Rome wasn't built in a day. Course correction takes time. So build the patience to see it through or vent your anger somewhere else.
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Oct 04, 2018 11:13am
Its benefits both sides, cheaper than competitor, so you buy Chinese.
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Oct 04, 2018 11:22am
"Referring to a power plant established under CPEC, Mr Dawood pointed out that even the ladder and furniture in that power plant had been imported from China."
I found the above line to be quite appalling.
Finally some common sense thinking when it comes to trade with China. But it may be too late now given the debt situation.
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Oct 04, 2018 11:26am
Request them half funds off from total amount because silk road is their project not Pak's. It will benefit them more than Pak. Impose some taxes and duty on goods which go through.
Plus they also have to declare all export at entry and exit points.
Build Patrol stations, motels, restaurants along silk highways, hire 70% local Labour and logistics to move export.
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Oct 04, 2018 11:37am
Whatever business deal is made between Pakistan and China, Pakistan should make sure that Pakistanis will be involved and will be employed in all projects of CPEC. Pakistan must not let Chinese to get citizenship of Pakistan and must not let them buy any property in Pakistan. It will create inflation and people of Pakistan will end up losing their properties and wealth. This happens to Zambia as its leaders for the sake of kick backs sign big projects with China and sold state owned companies and other properties to Chinese. Now Zambia's business is totally controlled by Chinese government and Zambians face discrimination in their own country.
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Oct 04, 2018 11:38am
It has been a one way ticket and benefit from the very early times. Pakistan has always been a ready market for Chinese products always with no government seriously interested in offsetting the effects of this one way trade. Any efforts to rationalize the same should be appreciated.
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Oct 04, 2018 11:49am
Razaq Dawood Is correct. The bilateral trade with China or any other country and the agreements under CPEC must be mutually beneficial and equitable. Nawaz sharif signed all agreements in secrecy and thus violated public trust. These agreements have no legal value because these were neither approved by the public nor ratified by the parliament
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Oct 04, 2018 11:51am
It should be win-win for both countries. Going forward, ladders and furniture will be made in Pakistan.
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Oct 04, 2018 12:01pm
Pakistan trade to China ought to be well above the USD2B target, or Chinese imports be well below the USD15B per annum to bring down the trade deficit in Pakistan's interests. Given China today manufactures high end technologies, Pakistan ought to competitively export the lower rung manufacture such as fans, chairs, household electronics, agriculture sector, fisheries, and such to China on a big scale to try to iron out the deficit....
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Oct 04, 2018 12:11pm
Trade with China means getting dumped cheap and substandard material which ultimately costs more in long run.
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Oct 04, 2018 12:18pm
"I have asked the Chinese ambassador to raise the imports from Pakistan to at least $2bn. " While china export 15billion. What's the use to raise it to 2billion?
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Oct 04, 2018 12:33pm
Not only ladders and furniture on the power plants are imported from China - they make sure only Chinese labor work on these projects, dont pay any tax, dont purchase anything on CPEC related projects from Pakistan.
In the end, this is a load given to Pakistan on international commercial rate. Tell me what is the benefit for Pakistan?
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Oct 04, 2018 12:36pm
Great move, best wishes.
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Oct 04, 2018 12:36pm
As chinese are using the land to build roads and other things it is wise to collect lease rent from them at commercial rate. This will yield sizeable revenue to pak.
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Oct 04, 2018 12:54pm
Ladder and furniture at my home is also from China. Just because of competitive prices. No corruption.
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Oct 04, 2018 12:56pm
At last, Imran Khan Niazi 'Naya' Pakistan government realize that current CpEC projects will benefit only 1 country --- China.
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Oct 04, 2018 01:05pm
Pakistan's export basket lacks variety. It has nothing to offer to China.
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Oct 04, 2018 01:13pm
Pakistan should accept whatever China offers otherwise not even one country would support Pakistan internationally and the UN too.
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Oct 04, 2018 01:31pm
China should release cpec funds
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Oct 04, 2018 01:44pm
‘Adviser to the prime minister on industries and production Razaq Dawood on Wednesday said that the rising tension between the US and China over trade tariffs was a good sign for Pakistan as “it would place us in a better negotiating position”.
Bad statement, makes us sound like bounders, taking advantage others strife. He could have put it more diplomatically.
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Oct 04, 2018 01:50pm
@AW " The bilateral trade with China or any other country and the agreements under CPEC must be mutually beneficial and equitable. " Can you indicate some products that Pakistan produces, and China refuses to buy them or have imposed tariffs on them?
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Oct 04, 2018 01:52pm
@AW Really? So will Pak drag China to International Court of Justice? These agreements are now signed and done. China can sue Pak now if it feels so. Please see the reality
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Oct 04, 2018 01:53pm
Good line! But actions matters and not speeches moatly targeted to fool own people.
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Oct 04, 2018 02:06pm
We maintain a huge military but unfortunately most of the equipment is imported . Even those that can easily be sourced from in country such as security systems and communication equipment . All solutions are sorted from abroad which leaves our students and universities driedof funds . Atleast source cctv system from incountry . Atleast .
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Oct 04, 2018 02:12pm
maximum efforts must be made to develop and strengthen our own industry in terms of military systems . Civilian contractors should be allowed to lead repair and maintenance work onboard ships and other high value platforms . Money should go back to public . Instead of going out of borders . Civilian contractors should be made a stakeholder to undertake modernisation programs rather than handing it over to another’s government agency which later contracts some other civilain organisation .
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Oct 04, 2018 02:13pm
All of projects must generate 80 percent jobs for Pakistanis . We have skill set to undertake all cpec projects .
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Oct 04, 2018 02:22pm
Go ahead, CPEC is life line for Pakistan. Backtracking will harm more.
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Oct 04, 2018 02:29pm
“The prime minister is visiting China on Nov 4 and we will take advantage of this situation by pitching our position as a trade partner,” I do not know how could that be achieved. What items will Pakistan export to replace USA as an alternative supplier. On the other side what more and at what cost can we import to bridge, even partially, the business lost by China in USA
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Oct 04, 2018 03:17pm
Pakistan receives more from China than it gives, including defence assurances, no price can be placed on that. Tariffs benefit nobody, they restrict international trade and many studies have shown that they hurt all those involved including the importing and exporting country.
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Oct 04, 2018 04:06pm
So where did Dawood actually say that the US-China trade spat was good for Pakistan? stop putting words in his mouth
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Oct 04, 2018 04:24pm
You do negotiate but you don't say these things publicly. Some things are left unsaid but rather done.
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Oct 04, 2018 07:09pm
What a statement by Mr Dawood. Just like Trump. Pakistan must also impose tariffs on Chinese imports. Learn from the best.
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Oct 04, 2018 09:42pm
Gradually Pakistani comments on Cpec reflect what Indians have been saying all along.
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Oct 05, 2018 08:40am
It is worth watching what USA is doing with both friends and foes alike in trade negotiations. We should do the same. Pakistan First should be the Policy.
The problems are that there are not export surpluses in Pakistan and the cost of doing business is ridiculously high due to over regulation and monopolies .
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