KARACHI, Feb 2: Chinese goods have become a nightmare for every industrialist of the world and Pakistan is not an exception, as goods worth Rs35.3 billion were imported through official channel alone during the last fiscal year.
May it be needles, decoration pieces, toys, shoes, garments, hardware, auto-parts or motorcycles, these are cheaper, durable and rich in designs and available both at the retail and wholesale outlets in nearly all major cities of the country.
During the last five years, imports from China have surged significantly. The most advantageous factor, which attracts the imports, is Chinese manufacturers supply goods according to the demands of the importer.
“There are A, B and C categories of numerous items. You tell them your demand, they will supply you the material,” said a Karachi-based importer of Chinese products.
In the year 2000-01, Pakistan imported goods worth Rs30.7 billion from China and exported goods worth Rs17.8 billion. But the exports dropped to Rs14.1 billion in the year 2001-02, according to official statistics.
However, the affected industrialists say that un-official imports were much higher than those items landing at the Karachi Port officially.
Besides smuggling, there is also under-invoicing of the goods in connivance with the customs authorities, sources in the local market claimed.
“The man who just left the room on your arrival today ordered three containers, and that weary-looking Afghan in our office imports goods worth millions of rupees every month from China,” said Majid Ahmed, a leading importer of shoes from China.
The office-cum-storage facility of Majid, adjacent to the popular Light House Market on the M.A. Jinnah Road, is full of boxes stuffed with shoes.
Referring to the four samples of leather shoes at his office, Majid said these were C-category material and even this third grade item is in good demand.”
The Afghan dealer, who would not identify himself by name, said that he had no idea about the average number of containers of goods coming from China. “There is no fixed number of containers, but it is in the hundreds,” he said.
The cost of a container with miscellaneous items from China ranges from Rs1.5 million to Rs6 million.
An official of a leading shoe-manufacturing company disclosed that during the last two years one shoe factory had to be closed down, as it could not compete with the imported stuff.
A survey of the market showed that a locally-manufactured pair of shoes cost from Rs100 to Rs2,000.
“If a quality pair of a locally-made leather shoe is available at the rate of Rs600 or Rs1,000, the same stuff from China could cost Rs200 to Rs300,” a customer, Mohammed Ajmal, said in the Light House Market.
Similar is the fate of toys and other hardware items. Hundreds of toy-manufacturing units have shut down after the arrival of tons of toys from China in the recent years.
“Plastic made and stuffed Chinese toys are cheaper and rich in variety,” said Mohammed Ali Memon, a wholesale dealer of toys in the Boulton Market.
Zahid, whose family has over 30 years of trade affiliation with the Chinese counterparts, said taxes on imported stuff amounted to about 60 per cent of the cost of the product.
“Despite huge taxation, Chinese goods are feasible to import and market here,” he said. Under the rules of the World Trade Organization, Pakistan could not place any barriers on any foreign made commodity unless a major issue crops up against any product.
In the automobile sector too, the Chinese now bear good reputation in the local market. Recently, at least ten Chinese-origin motorcycles have been introduced in the market. These are now being assembled locally. “Chinese-origin motorcycles are available up to 30 per cent lower rate than the popular Japanese makes,” said Sabir Shaikh, a motorcycle-dealer on Akbar Road.
Prices of motorbikes have plunged by more than 50 per cent in China, however, the taxes at import stage count to 152 per cent.
“A 70cc motorcycle is available at US dollar 300 or about Rs16,000 in China, while the same two-wheeler costs Rs44,000 in Pakistan because of taxes,” Shaikh pointed out.
There was brisk sales of Chinese motorcycles in the local market due to the attractive prices as compared to other makes.
Dealers now import completely knocked down motorcycles from China and assemble them here to fetch higher rates of profit. Similarly, the spare-parts of these motorcycles are also available at competitive rates.
The rising cost of living and poverty are the major factors that force the customers to opt for goods that are available at affordable prices. In addition, the quality of the Chinese goods make them first choice of the customers as compared to high-priced locally-manufactured consumer goods.—APP