BEIJING – Pakistan’s exports which grew for the fourth consecutive month inDecember 2020 to US$2.357 billion, up 18. per cent from US.1.993 in thecorresponding month of the previous year, is a vindication of thegovernment’s policy to keep the wheels of economy running during theCovid-19 pandemic.
This was stated by Cheng Xizhong, visiting professor at SouthwestUniversity of Political Science and Law in an article here on Sunday.
Prime Minister Imran Khan took to Twitter to extend congratulations toexporters for achieving record exports in the month of December 2020.“Congratulations to all the exporters on achieving record exports inDecember 2020 with a growth of 18% over the previous year. Well done andkeep up this trend. A major pillar of our government’s economic policy isexport enhancement and we will provide full support to promote exportculture.”
Cheng Xizhong believed that there are three main reasons for Pakistan’ssubstantial export growth: First, this shows the resilience of Pakistanieconomy and it is a vindication of the government’s policy to keep thewheels of economy running during the Covid-19 pandemic.
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The policies of the federal government of Pakistan are very wise, focusingon the prevention and control of the pandemic on the one hand and theeconomic recovery on the other. Judging from the current situation, thenovel coronavirus pneumonia in Pakistan has been effectively controlled,and in this regard, Pakistan has done the best in South Asia.
At the same time, from the very beginning to now, the Imran Khanadministration has strongly stressed the importance of economy development,improvement of people’s livelihood, increase of exports, and maintenance ofa good state of finance, and to this end, promulgated a series of policiesand measures.
Sharing the second reason, he said, the second phase of China-Pakistan FreeTrade Agreement (FTA) came into effect on December 1, 2019. The conclusionof the second phase of FTA between China and Pakistan is an importantmeasure to further enrich the all-weather strategic cooperative partnershipand enhance the level of trade liberalization and facilitation between thetwo countries.
Since then, Pakistan’s exports to China have increased rapidly. Forexample, Pakistan’s rice exports to China have increased from 1.3% in thepast to 24.4% in 2020. The Chinese government and people have a stronginclination for expanding trade between China and Pakistan. Some ofPakistan’s special vegetables and fruits are being favored by the Chineseconsumers. At the same time, Pakistan is a very reliable supply chain forChinese halal food.
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Third, he said, the substantial growth of Pakistan’s exports should also beattributed to the cooperation between China and Pakistan in building theeconomic corridor. The corridor construction has entered a new stage, andthe construction of special economic zones (SEZs) and industrial parks issteadily advancing.
Now the increase in overall exports is mainly driven by double-digit growthin proceeds from textile and clothing sectors as well as engineeringproducts, surgical instruments and value-added leather products.
Experts predict that once the SEZs and industrial parks are fully inoperation, Pakistan will have a series of modern industrial productproduction lines. By that time, Pakistan’s exports will grow at a rate of30-50 per year.