by Meng Lingjuan

Photo shows the Adviser to Prime Minister for Commerce, Textile, Industries, Production and Investment Abdul Razzak Dawood is receiving an interview by reporter from Economic Daily - China Economic Net during the second China International Import Expo (CIIE) in Shanghai, east China. (Economic Daily - China Economic Net/Dong Jiapeng)

After knowing mangoes, Pakistan's king of fruits, have been introduced in the first episode of "EXPLORING CEPC", the micro-documentary series produced by Economic Daily - China Economic Net, Dawood said, "When you come to Pakistan next time, exchange other areas that we are the best." (Economic Daily - China Economic Net/Dong Jiapeng)

The head of Pakistani delegation for the Second China International Import Expo (CIIE), Abdul Razak Dawood, did not ask for an interview outline in advance. The Adviser to Prime Minister for Commerce, Textile, Industries, Production and Investment accepted an exclusive interview with China Economic Net (CEN) reporter during the CIIE.

President Xi a visionary man, updated FTA a multi facet agreement

Dawood, a politician and an industrialist, first talked about President Xi Jinping's keynote speech at the opening ceremony of the CIIE on October 5th. "President Xi is a visionary man and a great leader. He has come forward to tell the world that China wants to import from the world. It just certainly very enlightening for all of us, and we feel that it is a very good initiative," Dawood told the CEN reporter.

In his speech, President Xi proposed to cultivate a number of demonstration zones for import trade promotion and innovation. Touching on this, Dawood said that Pakistan is looking at wide range of cooperation with China in geographical areas and products. "Chinese government has given us opportunity that we can export more than just textile, leather and agricultural products, we are now going to get into chemicals and engineering, and see it a very good opportunity for partnering more and more with Chinese companies," said Dawood, "the Free Trade Agreement (FTA) that Pakistan had been signed with China will become operational from the first of December. It will be a multi facet agreement, and we look forward very much to its implementation." 

Pakistan’s potential export growth to China 20-fold

The FTA referred to by Dawood is called the "Amending Protocol of the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Islamic Republic of Pakistan", which was signed on the first day after the Second Belt and Road Forum for International Cooperation witnessed by the Prime Ministers of the two countries.

According to Pakistani estimation, the 313 zero-tariff items granted by the Chinese side will cover about 2 billion U.S. dollars of Pakistani exports to China each year, while from the State Bank of Pakistan, the revised total exports of Pakistan to China showed an increase of 106 million U.S. dollars in the previous fiscal year, namely July 2018 to June 2019, with a potential growth of about 20 times.

When asked about if the growth of Pakistan's exports to China likely to increase 10 times at the end of this fiscal year since the implementation of the new FTA, Dawood said, "I hope so, that is the type of thing that we want to do absolutely. And I look forward to that type of growth. We have tremendous interest in expanding our export to China, we had a few people come to the first Expo, the second one will have more. And I can assure you at the third and the fourth, there will be much more, many more parties will be coming to the third and the fourth import expo, it will be on fifty. This is most interested in Pakistan to further our business relationship with China."

Sugar exports likely to increase, minerals and precious stones new focus

Dawood's expectant increase in total exports to China comes from an increase in the export volume of each specific trade category. Dawood expressed his views on three representative categories proposed by the reporter, namely sugar, minerals and precious stones, as well as cherries.

Pakistani sugar is undoubtedly a star product in China-Pakistan trade. In the last fiscal year, according to the data released by the Statistics Bureau of Pakistan, Pakistan's sugar exports to China stood at 609.9 million U.S. dollars, which was more than four times as much as that of the fiscal year 2018. Will there be same amount of sugar export to China this year? In this regard, Dawood gave a positive answer. In the context of the WTO's ruling that India's sugar export subsidies were illegal at the beginning of this month, is it possible for Pakistani sugar exports to China to increase? For this question, Dawood said with a smile, "I agree with you. Our relationship is now on a business to business, people to people basic, getting so much better. Exactly what you say, I am very hopeful. That is the quantum jump and will get in all areas," he said.

Minerals and precious stones were the categories frequently mentioned by Naghmana A. Hashimi, Pakistani newly-appointed ambassador to China, when she was interviewed by the reporter towards the end of September. It is reported that among the newly added zero-tariff items, there are 12 minerals and precious stones related items, among which the tax rates of precious stone and semi-precious stone products have dropped the most, from 35% to zero. Some Chinese companies have begun to pay attention to copper-gold deposits in areas such as Reko Diq area. "This is the new area where Pakistan is now going to concentrate on. We have lots of opportunity. Our trade is very low with China, and we will certainly be concentrated on this area," Dawood added.

The third representative category is cherries. Former Pakistani Ambassador to China Masood Khalid mentioned "Chilean cherries myth” after CPEC Media Forum last year and told the CEN reporter that Pakistan produces world-class cherries. Thus CEN shooting team has reached Gilgit-Baltistan region, and shown the photos of Pakistani cherries on the Chinese media for the first time. The delegation from China's food and quarantine department also visited the above-mentioned areas in the middle of the year to push forward the solution of the quarantine problem. "I'm taking these issues up with your government tomorrow, the quarantine issues, to make sure it all get cleaned so we can do more business," said Dawood as he thanked the CEN reporter for mentioning the matter and was willing to share the progress with the media.

Inspired by a joke - learn from South Koreans' experience in export to China

As far as the role of media in facilitating trade, CEN reporter mentioned a joke told by a Pakistani businessman in South Korea to Dawood - a South Korean company that is worth 1 million may seem to have a market value of 1 billion, while a Pakistani company with assets of 1 billion often seems to have a market value of 1 million.

Dawood nodded while listening. "Pakistan still (has) a long way to go to improve its image, to do better marketing. We're not very good at international marketing and this stems from the fact that in domestic marketing, demand has always been greater than supply. So the emphasis on marketing is less. Overseas is the other way around. Pakistan has to market, and we haven't learn it yet, but we will. What you said is absolutely correct. But I can assure you Pakistanis are fast learners. Once they understand they have to learn, this is what they would do," he said.

In 2018, the bilateral trade volume between China and South Korea totaled about 313.4 billion U.S. dollars, of which China saw a deficit of 96 billion U.S. dollars. Even with such export performance, the Korea International Trade Association and Korea Federation of SMEs still seek to access various platforms and channels with the help of Chinese media and learn how to conduct localized content marketing in China, how to shorten and optimize the time for admission of cosmetics and medical instruments into China. When asked what about introducing South Korean' Chinese marketing model to Pakistan, and trying the exchanges among three countries, Dawood said, "I think this is a very good idea. I will certainly look into the thing of how we can get a three way cooperation, get the help from the Koreans and then export here in China."