July 8, 2006	Saturday	Jumadi-ul-Sani 11, 1427

BEIJING, July 7: Pakistan's exports to China registered 27 per cent growth in the first five months of this year, making considerable headway in overall economic interaction between the two countries, according to the Chinese Customs authorities.Exports to China between January and May 2006 amounted to $381.25 million compared to $299.7 million in the corresponding period last year. Hence, the increase in Pakistan's exports to China in five months was about $82 million.

The sources told APP here on Friday that there was a considerable jump in export of items like cotton yarn, cotton fabrics, leather and seafood.

The Early Harvest Programme (EHP) signed by the two countries last year will also gradually contribute to this upward trend, said Commercial Counsellor Shahid Mahmood in Pakistan Embassy here.

The EHP is a mini-fast track trade programme and a prelude to the Free Trade Agreement (FTA), expected to be signed between the two sides by the end of this year. Both Pakistan and China had increased duty free market access for each other on items of significant commercial interest from January this year.

Apart from this, a number of products can be traded by both counties at margin of preference on MFN’s duty rate. In this way they enjoy concessionary duty rate export of same products from other countries.

When asked to comment on the future prospects of Pakistan's trade with China, Shahid Mahmood said,” We are confident that the strong growth that we had in our exports to China last year would continue in the coming months.”

Pakistan's export to China is likely to cross the $1 billion mark by the end of this year. The Chinese customs authorities had reported $832 million Pakistan's exports to China during the year 2005.

According to the sources, there is a great potential for enhancing exports, particularly of valued-added textile products including cotton fabrics, home textiles and towels.—APP