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Chinese team at KCCI lunch

More cooperation in

trade, joint ventures

and investment stressed

SHAHID IQBAL

KARACHI: Cooperation between China and Pakistan will further boost the emerging economies of both the countries, said the leader of the Chinese trade delegation, An Chengxin, while addressing a luncheon meeting held by the Karachi Chamber of Commerce and Industry on Sunday. Speaker from both sides agreed on greater cooperation in the area of trade, investment and joint-ventures.

The 31-member Chinese delegation is led by the Vice Chairman of China Council for the Promotion of International Trade (CCPIT).

It was realised that the volume of trade between the two neighbours was far less than the expectations. The total volume of trade for the year 1994-95 was 529.62 million US dollars. Pakistan's export was only 90.62 million US dollars while the rest, 439 million US dollars was imports from China.

"The balance of trade continues to be against Pakistan", said Haji Shafiq-ur-Rehman. He also stressed the need for diversification and increase in the quantum of trade between the two countries. "Pakistan will have to identify non-traditional items for the Chinese market", said Shafiq. Urea fertilizer, iron and steel and shipping-scrap can be the commodities to be exported to China, he added.

The Chinese delegation chief An Chengxin, while welcoming the Pakistani traders and industrialists to China, agreed to increasing trade volume. He also conceded that the balance of trade was in favour of China "which could be changed by increasing trade".

He expressed the hope that Pakistani products could get their place in Chinese market. He also offered joint ventures in both countries, but no concrete proposal was given.

The delegation will stay for another two days in Karachi to discuss various aspects of investment, trade and joint ventures. "The economic collaboration and joint ventures can be of greater assistance in the transfer of technology and resource generation. Possibilities of setting up joint ventures in different fields, such as mini-sugar plants, fertilizers and cement plants, machinery for light industrial products, chemicals, electronics, etc., should be examined for sharing experience and expertise as well as transfer of technology and promotion of trade", proposed Haji Shafiq.

The CCPIT business delegation is quite broad-based and consists of concerns dealing in a variety of items/subjects, including textile machinery, medicine and health products, automobiles, power, energy, finance, banking, textile machinery, construction transport, shipping, etc. "They, besides tapping the market for exporting their products to Pakistan, are also interested in setting up joint ventures in different areas", said Shafiq. He was of the opinion that Pakistan, in the view of limited capital resources and abundant manpower, had ample scope for the development of light industry. "China can be of great help and assistance in setting up a chain of light industry, especially in the fields of electric, electronic and engineering in Pakistan".

In his address, An Chengxin, stressed greater cooperation between the two countries. "China and Pakistan, both are the emerging economies of the world. Greater cooperation will help each other. We are looking for the possibilities of joint ventures, increasing trade volume and studying area of investment", said Chengxin. He also expressed hope that disputes in trading with China would be resolved soon.

It may be mentioned here that Pakistani exporters and importers have been complaining that Chinese traders 'do not stick to their commitments'.