China has offered a bilateral trade in Yuan or Renminbi to Pakistan. In order to resolve the widening trade deficit issue, Pakistan is offered the trade in Yuan by China.
Chinese ambassador to Pakistan Yao Jing proposed this in a meeting with Mian Misbah-ur-Rehman the former caretaker Minister for Commerce.
In the meeting, different issues were discussed relating to bilateral trade and economic cooperation between China and Pakistan. Furthermore, China is also ready to reduce the trade deficit by announcing a one-sided trade concession to increase Pakistani exports to China.
The China–Pakistan Free Trade Agreement (CPFTA) Part-1 recorded Pakistan’s exports to China of $1.5 billion and China’s exports to Pakistan of more than $15 billion last year. So the exports were much more in favor of China. The second phase was unsuccessful as both the countries were not able to reach to a consensus.
Former Prime Minister, Shahid Khaqan Abbasi presided a meeting in which it was decided not to finalize CPFTA-II for now.
Former Caretaker Minister of Commerce complimented Chinese investment in the auto sector of Pakistan in order to boost the industry and bring new, best-quality vehicles in the country.
As per the sources, the Chinese government is considering inviting the new Prime Minister of Pakistan Imran Khan for China Import Fair on November 2018.
In order to make Imran Khan’s visit effective, a Commerce Minister or the Secretary Commerce led delegation will visit China first. The delegation will identify the areas in which both countries can cooperate and achieve more.
As per the Chinese Ambassador China-Pakistan Economic Corridor (CPEC) is more focused on energy and development related projects but China is considering cooperation in more areas including trade promotion, foreign direct investment (FDI) and social industry support.