China has reportedly communicated to the caretaker government in Pakistan that it will wait for an elected government to return to power in the country before signing long-term contracts with Islamabad in any sector, a local English daily reported on Tuesday.
The report cited background interviews with some of the businessmen who accompanied the caretaker commerce minister, Gohar Ijaz, on a visit to China in October.
Pakistan is due to hold general elections on February 8 and an elected government could be sworn in within weeks after the polling.
Pakistan has sought expansion of the Free Trade Agreement (FTA) with China. Earlier this month, Pakistan and Saudi Arabia got closer to signing the free trade agreement with the Gulf Cooperation Council.
Agricultural, electric vehicles, marble, cement, fertilizer, fruit and vegetable, home appliances, glass, chemicals, and textiles were the sectors covered in the Pakistani delegation’s visit to China.
The caretaker commerce minister held several meetings with the Chinse officials. However, he did not meet his Chinese counterpart with any specific agenda on trade expansion, reported the Daily.
China’s exports to Pakistan stood at $20 billion per annum whereas Pakistan’s exports to China are merely $2 billion, according to Ijaz.
Moreover, the Chinese side stressed the need for honoring the agreements in “letter and spirit”.
The Pakistani businessperson said they received an “encouraging response” from the Chinese side, but they did not reveal their deals with the Chinese companies.
However, the information collected from the entrepreneurs suggested that Chinese officials were not “happy” with the statement of Ijaz concerning the trade imbalance with China.
“Chinese are extremely angry at the statement of the caretaker Commerce Minister concerning imbalance in trade,” said one of the entrepreneurs.
An official statement said that the delegation actively participated in the China-Pakistan Textile Summit and engaged in insightful discussions. The delegates aimed to strengthen bilateral trade relations and explore avenues for increased cooperation, it added.
The signing of a memorandum of understanding between the China Chambers of Commerce and All Pakistan Textile Mills Association was cited as a “significant milestone”.
