HomeBusinessCPECPakistan Targets $1 Billion Trade with China through Land Route

Pakistan Targets $1 Billion Trade with China through Land Route

Pakistan achieved a significant milestone by successfully delivering a cargo container filled with seafood to the Xinjiang Uyghur Autonomous Region through the renowned Karakoram Highway. This accomplishment has paved the way for Pakistan to target a staggering $1 billion in trade with China through the land route in the coming years. Ghulam Qadir, the Commercial Counselor at the Embassy of Pakistan, shared this optimistic outlook on Saturday, expressing satisfaction at the start of seafood exports from Pakistan to China through the land route.

Qadir hailed the achievement as a momentous success, affirming their determination to capitalize on it for substantial export growth. Highlighting their vision, he stated,

“Our goal is to foster a thriving trade ecosystem worth $1 billion through the land route in the long term. Despite the prevailing circumstances, we anticipate witnessing a substantial upsurge in export and trade, amounting to millions of dollars in the upcoming fiscal year.”

The export of seafood from Pakistan to China through the land route has been warmly received by the Chinese foreign ministry. A spokesperson expressed their willingness to welcome quality agricultural products from Pakistan into the Chinese market and affirmed their commitment to working closely with Pakistan to boost bilateral trade through land transportation.

Highlighting the close cooperation between China and Pakistan as all-weather strategic cooperative partners, the spokesperson emphasized the mutual benefits that can be derived from strengthening trade ties.

Pakistan’s first-ever seafood cargo container arrived in Kashgar city of Xinjiang Uyghur Autonomous Region via Karakoram Highway, signifying a remarkable milestone. This historic transportation of seafood containers from Karachi to Kashgar city along the China-Pakistan Economic Corridor (CPEC) has been made possible by the flagship project of the Belt and Road Initiative (BRI).

The Chinese foreign ministry spokesperson reiterated their support by stating,

“We welcome quality agricultural products from Pakistan to enter China’s market and stand ready to continue working with Pakistan to boost our trade through land transportation, achieve sustainable growth in bilateral trade, and deliver more benefits to our two peoples.”

Pakistan Ambassador to China, Moin ul Haque, expressed his satisfaction with this development and highlighted the joint efforts being made by the Pakistani and Chinese governments to bring more Pakistani seafood and agricultural. Pakistan is now exporting seafood and agricultural products to the Chinese market using the Karakoram Highway.

Haque emphasized that China, being the world’s second-largest consumer market, presents an opportunity for Pakistan to export more high-quality products.

Ambassador Haque further stated that facilitating trade and exports of Pakistan’s high-quality products through the Khunjerab border is a shared objective of Pakistan and China. A landmark collaboration between a Pakistani transport company and a Chinese firm signifies a groundbreaking initiative in fostering bilateral cross-border road transport trade.

This initiative benefits from lower shipment costs compared to air transport and simplified customs clearance procedures. Furthermore, transportation by road reduces the transport time to eight days, making it suitable for small-scale and point-to-point logistics. In stark contrast, shipping goods via sea from Karachi Port to Yangshan Port in Shanghai typically requires approximately one month of transit time.

The reopening of the Khunjerab pass, a major land route on the China-Pakistan border, has been a significant development. After being closed for three years due to Covid-19 restrictions, the pass officially reopened for passengers and goods in the first week of April this year.

Initially, the Khunjerab pass opens from April 1 to November 30 each year, with closure during the winter months. However, efforts are underway to keep the border crossing open for 12 months, transforming it into an all-weather facility. This move is expected to foster substantial growth in cross-border trade and transportation between Pakistan and China.

Moreover, the recent allowance of cherry exports from the Gilgit-Baltistan area to China has created a market potential of up to $2 billion. Similarly, sesame seed exports to China have witnessed an increase.

Furthermore, textiles, rice, cherries, mangoes, and other food items hold the potential for export to China, helping Pakistan achieve its target of $1 billion in exports to its neighboring country.

From 2016 to 2020, official data highlights that the Khunjerab Pass witnessed a remarkable import and export cargo volume, surpassing an impressive 200,000 tonnes. This data underscores the existing trade potential between Pakistan and China, which can be further harnessed through the land route.

In conclusion, Pakistan’s successful transportation of seafood cargo to China through the land route has opened up new avenues for trade between the two countries. With ambitious targets set for the future, both Pakistan and China are committed to strengthening their trade ties and expanding bilateral cooperation. The strategic importance of the China-Pakistan Economic Corridor and the efforts to develop the Khunjerab pass as an all-weather facility exemplify the long-term vision for enhanced trade and economic growth in the region.

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