China makes new offer to Pakistan to arrest the rising trade deficit, economic troubles
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ISLAMABAD - China is said to have offered Islamabad the option of commencing trading in Renminbi (Yuan) in which regard meeting has been held with the State Bank of Pakistan (SBP).
According to sources privy of the development, the recommendation was put forth by the Chinese Ambassador to Pakistan Yao Jing in a meeting with ex-interim Minister for Commerce, Mian Misbah-ur-Rehman.
In the meeting, several issues of economic cooperation and bilateral between the two countries were brought forth.
Also, China is mulling announcing unilateral trade concessions to Pakistan which will increase its exports to Beijing and hence decrease trade deficit.
The China-Pakistan free trade agreement (CPFTA) part 1 favoured China since their exports to Pakistan were valued over $15 billion compared to Pakistan’s exports of a meagre $1.5 billion in FY18.
And the last round of CPFTA talks held in Islamabad were unsuccessful as both countries were unable to reach an agreement on the second phase.
Also, a high-level meeting presided under the chairman of ex-prime minister Shahid Khaqan Abbasi had taken the decision of not finalizing CPFTA part 2 till the industry was taken aboard