FTA with China continues to hurt Pakistan’s economy

Islamabad Chamber of Small Traders on Friday said FTA with China has inflicted heavy losses on Pakistan’s economy, therefore, it should be reviewed and balanced immediately.

Many industrial units and SMEs have closed as a result of faulty trade deal resulting in massive unemployment, he said.

The deal is heavily tilted towards China as Beijing’s share in Pakistan total imports has jumped to 29 percent which must be reduced, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.

He said that after the FTA with China, Pakistan’s exports comprising mainly of rice and cotton jumped from 400 million dollars to 1.7 billion dollars while Chinese exports to Pakistan swelled from 1.8 billion dollars to almost fourteen billion dollars which has taken a toll on the economy.

Pakistan is importing electric and electronic goods, machinery, ceramics, plywood, chipboard, bicycles, iron and steel, chemicals, fruits and vegetables and a lot more from the friendly country while exporting a few items due to taxes imposed by Chinese authorities, he added.

He said that China’s FTA with East Asian countries has resulted in further loss of exports are Pakistani goods are attracting higher tariffs in China as compared to the goods produced in East Asian nations.

He said that not a single trade deal has benefitted Pakistan but deal with China remained on the top as far as negative impact on the economy is concerned.

Shahid Rasheed Butt said that we support the demand of the exporters to reduce energy rates in line with the prices prevalent in the competing nations so that Pakistani goods can compete in the international market.