Coronavirus has dreadfully affected the Chinese economy in the past three months. More than a dozen countries have banned Chinese products as the outbreak has infected more than 40,000 people in the Sino region.
Furthermore, international carriers have also canceled flights to Chinese cities, resulting in hundreds of foreign citizens being stranded at various airports of the country.
The epidemic has stunted the economic growth of the Asian Goliath. Experts believe that Chinese economic growth will heavily suffer, estimations suggest a contraction of more than 1% in the economic growth of the country.
The WHO has categorised the outbreak as a public health emergency of international concern. The symptoms arose in the city of Wuhan in the Chinese province of Hubei on December 1, and since then the city is under a lockdown.
This national emergency can be a source of relief for Pakistani people and industries, as once Baron Rothschild said, “Time to buy is when there is blood in the street.”
The epidemic has halted the ‘One Belt One Road’ project, whereas. on the other hand it has provided an economic opportunity to Pakistani products to reach the European frontiers.
Chinese products are now banned by various countries, airlines have stopped their operations in China, and global powers are accusing the Asian Goliath of mistreating the patients. Some went to the extent of calling the patients as internees in Chinese hospitals.
It has provided a golden opportunity to Pakistani products to reach the European frontiers and gain a competitive advantage over their Chinese counterparts.
The neighboring country has been turned into a global pariah. It allows Pakistan to try her luck in different markets, which were once dominated by Chinese products. It will also provide the country with a head start in markets such as halal food, aquatic animals, and textile products.
Halal food is a $1.6 trillion market. This industry is booming with more than two billion Muslims living around the globe and following certain Islamic dietary requirements. Currently China has been exporting more than $ 100 million worth of halal food to the market.
Pakistan is potent enough to export Halal meat to the Muslim population of South East Asia, whose demand has recently exceeded $1.9 trillion, but unfortunately it remains an untapped market. The Islamic republic is losing a fair opportunity to hit a new market. Pakistan’s meat exports have never crossed $5 billion, and it has only narrowed down to Afghanistan, and six Gulf countries i.e. Saudi Arabia, UAE, Oman, Bahrain, Qatar, and Kuwait.
This epidemic provides Pakistan to explore other regions without the fear of intervention from giant neighbours.
Chinese textile products constitute around 110 billion euros of the European textile market. It allows Pakistan to be a substitute for Chinese textile products in the European region. The country already has a pricing edge due to the GSP plus status and it is time to play the cards right.
Pakistan has an opportunity to promote itself, and it should do its best to strike, mainly because the iron is red hot.
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