KCCI, SFIC ink cooperation MoU

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has signed a Memorandum of Understanding (MoU) with Shanghai Federation of Industry and Commerce (SFIC) for setting up a joint working group and building a platform for trade and economic exchanges, a statement said on Friday.

The MoU, which also focuses on strengthening information sharing, promoting exchange of enterprises, consultation and evaluation on regular basis, was inked by Senior Vice President KCCI Saqib Goodluck and Senior Vice Chairman SFIC Shi Dengding during Shanghai-Karachi Economic & Trade Exchange Webinar.

Commenting on the development, Zubair Motiwala, Chairman BMG & Former President KCCI, said, “Although Pakistan and China has been enjoying excellent relations, the business communities of the two countries will have to focus on further strengthening trade and investment ties by undertaking joint ventures in numerous sectors of Pakistan’s economy, particularly the infrastructure development and the energy sector as Pakistan has been facing dire gas shortages”.

He pointed out that in 2019, Pakistan exported goods worth $2 billion to China, while the imports from China stood at $16.2 billion, depicting a trade deficit of $14.1 billion.

“Trade cooperation between the business communities of the two countries has to be strengthened and improved to such an extent that it converts the $16 billion imports of Pakistan from China to US$16 billion exports to China which is possible only if we make collective efforts”, he added.

Motiwala said total trade with China improved by 300 percent to reach $18.2 billion in 2019 mainly due to China Pakistan Free Trade Agreement; however, while imports from China grew rapidly, Pakistan’s exports could not secure similar gains in China which was a matter of concern.

“If we look at the trade figures of last seven years from 2013 to 2019, the exports to China have declined by 26 percent in 2019 compared to 2013, while the imports have risen 47 percent in 2019 compared to 2013. China’s share in Pakistan’s exports and imports has risen steadily too, though China’s share in Pakistan’s imports has grown much more rapidly than its share in exports”, he added.