Pakistan can gain if US sanctions China: PBIT chairman

LAHORE: Pakistan stands to gain significantly if the United States follows through on its potential plan to impose trade sanctions or tariffs on Chinese exports, says Muntahi Ashraf, Chairman of the Punjab Board of Investment and Trade (PBIT). Ashraf believes that such a move by the US could prompt a shift of Chinese manufacturing to countries like Pakistan, offering the country a valuable opportunity to bolster its industrial sector.

While talking to Daily Jang, Ashraf explained that while the federal government has yet to make significant progress in preparing for this scenario, Punjab has already begun researching which sectors could benefit from the potential shift in manufacturing. “If the US imposes tariffs or sanctions on China, it is likely that Chinese manufacturing will seek alternative destinations. We must be ready to attract these industries,” Ashraf said.

PBIT’s research is focused on identifying sectors in Pakistan where high import duties exist but local production is limited, allowing the country to reduce its dependence on imports if Chinese manufacturers relocate. “By attracting these industries, we can boost local production and develop our industrial sector,” Ashraf explained.

Another area of focus is examining Chinese products that face anti-dumping duties in the US and Europe. Ashraf sees this as an opportunity for Pakistan to take advantage of the European Union’s GSP Plus status, which allows Pakistan to export goods to Europe tariff-free. “If these industries move to Pakistan, we could potentially export them to European markets with significant cost advantages,” he added.

Ashraf also emphasized that the shifting of Chinese manufacturing could happen swiftly, particularly if the US imposes new tariffs. “This is a time-sensitive issue. We need to act quickly to identify which industries can relocate to Pakistan and ensure we are positioned to take full advantage of this opportunity,” he said.

Ashraf concluded by stressing that with the right strategy and timely action, Pakistan could significantly enhance its manufacturing sector and attract international investment, turning the shifting global trade dynamics to its advantage.