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Exports

Pakistani Exporters Urged to Shift Focus to Value-Added Products for China Market

Strategic Insights

— 1 min read

Pakistani exporters are strongly advised to shift their focus to exporting value-added products to China, rather than relying on raw material exports. According to Consul General in Shanghai Hussain Haider, the Pakistan business and industrial community need to prioritize value-addition to increase their nominal market share in the Chinese economy. Currently, Pakistan's exports to China are dominated by raw materials, with copper and articles, as well as cotton yarn and fabrics, being the top two exported products, totaling $903.2 million. In contrast, exports of value-added products like knitted apparel and woven apparel stood at $79.4 million.

Key Takeaways:

  • Pakistani exporters must focus on exporting value-added products to increase their market share in China.
  • Raw materials, such as copper and cotton yarn, dominate Pakistan's exports to China, with a total value of $903.2 million last year.
  • Value-added products, like knitted apparel and woven apparel, comprised only $79.4 million of exports to China in 2022.
  • The Yangtze River Delta (YRD) region in China is the most technologically advanced region with the highest per capita income, contributing approximately 20% to the Chinese GDP.
  • Pakistani consulate in Shanghai has identified sectors like textiles, medical equipment, and leather articles where Pakistani manufacturers have expertise.
  • Shariq Vohra, president of KCCI, reiterated the need to explore the YRD region, which is one of the richest regions in China.
  • Business and industrial community in Pakistan need to explore trade and investment opportunities in China through effective utilization of technological advancements.
  • Alibaba.com offers limited services to Pakistani businessmen due to lack of adequate payment solutions.

Statistics:

  • Pakistan's raw material exports to China totaled $903.2 million in 2022.
  • Exports of copper and its articles valued $551.2 million, while exports of cotton yarn and fabrics were worth $352 million.
  • Value-added products like knitted apparel and woven apparel accounted for only $79.4 million of Pakistan's exports to China in 2022.
  • Yangtze River Delta (YRD) region contributes 20% to China's GDP.
  • Pakistani consulate in Shanghai has identified textiles, medical and surgical equipment, sports goods, and leather articles as sectors for potential growth.

Sources:

  • 'Envoy urges Pakistani exporters to shift to China' by The Express Tribune, November 9, 2022.
  • 'Pakistan wants to tap into China's US$7 trillion market' by Pakistan Today, December 16, 2022.

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