PAKISTAN CHINA Area of Cooperation

Education

A Technology University with the collaboration of Chinese universities in Pakistan is need of the time. Aim of the university will be to transform appropriate technology from China that suits to the needs and demands of Pakistan. The Technology University would provide Tailor made innovative solutions to various sectors of Pakistan.

Moreover China is also interested to incorporate Chinese curriculum into Pakistan that will include Chinese language, Chinese work ethics, innovative planning and development, on the priority basis but for this they need cooperation from Pakistan. Professor Dr. Nizamudin, Chairman Higher Education Commission has highly appreciated the idea and proposed to provide land for the formation of Pak-China Technology University
with Chinese collaboration.

It would be considered a big achievement if Pakistan succeeds to form such Technology University because currently the education sector of Pakistan lacks in technology and technical expertise whereas the youth of Pakistan is highly motivated, talented and creative, just little guidance and direction could do a lot.
There are various innovative projects, strategies and products made by students in the universities but these innovative ideas go unobserved due to lack of representation and interest at the government level. Innovators are neither rewarded, nor held in high esteem. There are no institutions or a financial support structure to help entrepreneurs bring their ideas to fruition.

Radical transformation is required that brings the search for knowledge, science, technology and innovation to the forefront of government support. Proposed Pak-China Technology University would include a collaborative research and development wing that would be linked with other universities and colleges for the development and chievement of innovative goals by providing training, technical and financial assistance to the students and interested people to execute their ideas. This initiative will change the approach of research. It will transform into research for Application rather research for the sake of publication.

Government of Pakistan’s support will exclusively be required to de-couple the implementation of knowledge-driven innovation- policy from the rest of its bureaucratic skeleton. It needs to form a flexible, innovation-centric, entrepreneur-lead quasi-public autonomous body ‘answerable to the Chief Executive of country only’ to orchestrate, implement and gauge the innovation strategy and to shield start-ups and pilot innovation projects from the bureaucratic, monopolistic and corporatist deathtraps.china
China is witnessing economic transformation at a massive scale by following the model of Europe for relocating part of its manufacturing sector to economically viable places that offer skilled labor at cheap wages. Pakistan can make its unemployed manpower effective in the current scenario by providing technical training in industry related work ambits. Pakistan can attract Chinese manufacturing sector by developing a trained workforce for industries. This will
be a great industrial transfer, which will bring in plenty of opportunities for Pakistan. One-third of Chinese manufacturers of textiles, garments, shoes and hats have already moved all, or part of their production, outside China.

Pakistan has 9th largest labor force in the world. According to the labor force survey 2013-14, the total labor force in the country is 57.24 million. Out of this labor force, 3.40 million people are unemployed and rests are employed to places that do not suite to their area of expertise. Export of quality manpower is the main driver in growth of remittances; therefore the structure of existing population of Pakistan shows that the country has 60% economically active population or work force which can prove to be a productive asset of the country if properly trained
through skill development programs.

Relocation of Chinese Manufacturing Sector

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China is ready to assist Pakistan in empowering its labor force in accordance with its industrial requirements through the formation of collaborative Research institutes and capacity building organizations that would impart vocational training Chinese work ethics including language and communication to the Pakistani labor. China is also interested and committed to establish such training institutes in Pakistan that would keep themselves in touch with the ongoing industrial trends, getting their input on the kind of workforce it requires, the institutes would be empowered enough to have machines, tools and technology used by textile, pharmaceuticals and surgical
industries to ensure a well trained and competent labor force for future consumption.

Government needs to take immediate steps to modify and empower existing vocational training Institutes like TEVTA. Currently, TEVTA enrolls on average 110,000-120,000 students in its technical training institutes, while the demand in the market is over one million. To invest in skilled workers to bridge the imbalances that occur due to inadequacy in human resource development is inevitable.

Training to Pakistani labor in market oriented fields with the collaboration of China would enhance labor capacity utilization and preference over untrained workforce. This trained workforce having a competitive edge could be preferably hired by countries like China that are expanding their manufacturing sector by relocating it in other viable countries.china-2
Forty (40) percent of major Chinese companies had planned to move factories from China to other locations, which include Vietnam, Pakistan, Bangladesh and Philippines. The movement has also been verified by a survey conducted by the ‘Capital Business Credit’, a US-based financial consultancy firm.

Shifting of Chinese Handicrafts Industry to Pakistan

Handicrafts of Pakistan, through the ages have fascinated the world by its creativity, aesthetics and exquisite craftsmanship , previously , nearly 65 per cent of women earned their livelihood from handicraft work, but the rising cost of inputs, difficult access to credit and poor marketing network, have brought the industry to its present dismal state. The range of handicraft products include Ajrak, ceramics, articles made of date leaves, farassi rugs, jandi, khes, musical instruments, caps, straw products, bangles, crucia work, embroideries, kashi, rilli, Thari carpets and woodcarving.

Shifting of Chinese Handicrafts industry to Pakistan can play a momentous role in empowering Pakistani women. Government of Pakistan needs to work on strategic methods for bringing the women in main stream of economy and address the cultural barriers in the full exercise of women’s citizenship.

China can be very helpful in attaining this goal as China was one of the leading producers of hand made products with an around 30% share in the world trade but with the technological advancements the handmade sector was transformed to machines. Currently handicraft manufacturing industry of China is facing challenges due to expensive labor whereas demand of the traditional handmade products is on rise. Therefore it would be very beneficial for Pakistan to initiate joint ventures with China in the handicrafts sector on the basis of buy-back guarantee under which raw material and wages would be provided by China and in return market driven handicrafts
items would be produced by Pakistan.

Pakistan can become the manufacturing house of handicrafts for China as Pakistan is enriched with a labor captive skilled human resource in the form of rural women; moreover like in several other sectors, there is an intense similarity of interest between Pakistan and China in respect to production and exports of giftware and handicrafts.
Handicrafts sector is the only sector having direct linkage with the skills of women. So there is dire need to tap this segment in order to empower more than 50% population of women in Pakistan. Revival of the handicrafts industry, however, lies in the development of infrastructure, provision of financial support to women artisans, establishment of direct links between buyers and artisans, elimination of middlemen and improved marketing facilities.

Cottage industries occupy an important position especially in rural set-up as traditionally in those areas women are not encouraged to work outside their homes. Therefore, a significant number of women in Pakistan are engaged in handicraft and tailoring activities. It is noteworthy that only in Khyber Pakhtunkhwa (KPK) 30% to 40 % women are associated with the cottage and handicraft industries.

Aggressive efforts can promote handicraft and cottage industries by establishing new industrial estates and cottage industry villages for bringing together the cottage industry at one place. Economic growth alone cannot guarantee social harmony and gender equity, especially in an under developed society. National development must be balanced by a strong emphasis on fair distribution of development benefits.

Fruit Quality Enhancement

Pakistan produces a wide variety of fruits and vegetables, with total annual production estimated at 9 million metric tons. This includes Citrus 989,000 metric tons, Mangoes 438,000 metric tons, Apples 525,000 metric tons, Guavas 126,000 metric tons, Apricots and other fruits 1.914 million tons. Other fruits include Bananas, Grapes, Pomegranates, Pears and Dates.

Alone Multan is producing 1,732 thousand tones mangoes approximately, with a total area of 167.5 thousand hectares under mango cultivation making it the second major fruit crop of Pakistan after citrus and is ranked fourth in the world for its mango production.

fruit

There is a large scope of collaboration between Pakistan and China to initiate fruit quality enhancement centers, fruit processing units, dehydration plants and cold storage chains to make Pakistani fruits in line with the international standards for export to world markets. Fruit sector of Pakistan is having enormous potential that can be beneficial for both countries. In this regard, China is willing to import fresh, processed and dry fruit from Pakistan, which would be re-exported to rest of the world after value addition.

Unfortunately, due to lack of advanced processing and packaging techniques, nearly 50 percent of total fruit production is lost during harvesting, transportation, preservation and storage. There is dire need to focus on this industry and to upgrade it by boosting both the fresh fruit packaging, grading and processing for value addition and to approach markets for export of fresh fruit and value-added products.

Major operational activities in this process that needs attention include sorting, washing, waxing, drying, grading and packing. If China establishes fruit processing and value addition plants in Pakistan, it would be beneficial to both countries.

ECO FARMING

It is the time to take the measures to follow Chinese cultivation model of “ECO- FARMING” to avoid the expected food crisis in Pakistan. Chinese cultivation model is comprised of usage of hybrid seeds, better water management, increased role of government for ensuring effective safety and support mechanisms such as making a reservoir of food grain, and also public-private partnerships to overcome the future food crisis.

farming

China, accounting for only 10 percent of arable land, produces food for 20 percent of the world’s population and it ranks first in worldwide farm output. It is because they have devised different techniques to increase the yield of crops just by making use of nature, and such farming is termed as, “ECO-FARMING”.

Implementation of Chinese model of farm mechanization practices at the earliest is unavoidable in Pakistan. Rice duck farming is an exclusive environment friendly technique used by China to increase yield of rice in which ducks are raised on rice paddies and feed on pests and weeds, which means the farmer doesn’t have to use earth and water-ravaging chemical pesticides and herbicides on their plants. Duck droppings are also an excellent, natural fertilizer for rice plants.  Similarly, growing two or more crops in proximity helps reduce disease outbreaks. The technique is particularly effective at reducing loss from rice blast disease, a destructive fungus that causes damage on panicles and leaves, killing them before rice grains form.

Pakistan’s per hectare rice yield is 3.1 ton whereas China is the largest producer of rice with per hectare yield of 6.5 ton, similarly Pakistan produces pulses per year with per hectare yield of 0.6 ton and China produces 1.2 ton per hectare which is twice that of Pakistan. Pakistan’s sugarcane production is 52.4 ton per hectare whereas China obtains a yield of 65.7 ton per hectare. Therefore Chinese cultivation pattern is the best model to be implemented, on the land of Pakistan in order to cope with the upcoming expected food crises.

The prices of food items such as vegetables, chicken and meat have increased by more than 20 percent, which has further made the half of the population of country food insecure. It is stated that 50 percent of the population is taking less calories recognized for average human need. In this situation Government should allocate land to locals in association with Chinese to obtain farm productivity on the same pattern as Chinese are doing. Corporate farming trend should be introduced to compensate rising inflation and high input prices through which agricultural productivity can be increased.

Cooperative society model could be introduced under specialized technical support with Chinese collaboration through National Productivity Organization (NPO) in Pakistan where people can join hands, pool their resources-invest and deduct all expenses to share fortune.

Chinese Model of Eco- Farming ensures healthy farming and healthy food for today and tomorrow, by protecting soil, water and climate, promotes biodiversity, and does not contaminate the environment with chemical inputs or genetic engineering.

Gems And Jewelry

China, being the world’s largest consumer market for Gems and Jewelry, has a vast room for export of Pakistan’s Gems and Jewelry products. Pakistan has emerged as the fifth largest country for the occurrence of gemstones but unfortunately Pakistan had not been able to benefit from its natural resources due to lack of skills, technology and knowledge of processing the mining material. Pakistan has huge resources of gemstone having variety of colors and properties at par with international standards in Azad Jammu and Kashmir and Northern Areas of the country.gem

Pakistan has a potential yield of 800 thousand carats of Ruby, 875 thousand carats of Emerald and 5 million carats of Peridot, which lay unutilized. These resources could not be tapped up to optimal level due to lack of appropriate cutting and polishing facilities in the country. Public sector organizations can explore opportunities available in the Chinese market. TDAP can organize exclusive Exhibitions of Pakistan’s Gemstones and Jewelry in China to attract world’s largest consumers living in a friendly country. In 2013, gems and jewelry worth $ 1.18 billion were exported after the expo Pakistan 2013 held in Karachi.

Collaboration with China is necessary to learn the latest techniques for cutting and polishing of the Gemstones. Chinese professionals in this sector should be invited to train Pakistani labor force for manufacturing and designing state of the art jewelry in this vital segment of the economy.

Synergistic strategy is needed to develop expertise in cutting and polishing Pakistani Gems with Chinese collaboration thus making products locally and, finally, linking them to the international markets in which 80% of customers are from China.  Gems and jewelry is an emerging sector of Pakistan with an immense export potential. In Pakistan the current level of gemstones trade, is expected to be more than $50 million annually, furthermore, most of the exports are in form of rough stones, mainly because of lack of sophisticated processing industry in the country. Pakistan’s Pink Topaz and Kashmir Ruby, are unique items all over the world, especially the Pink Topaz was considered as one of the second highest valued mineral, that was being smuggled to India in raw form, and then sold in the international market as a refined high cost item by India.

China started capturing the attention of global gem and jewelry industry since 1978 and with the passage of time China has turned to be a rapidly growing consumer market for Gems and Jewelry sector. In 1980, only 20,000 people throughout China were involved in the jewelry industry. Thirty years later, more than three million are employed in this field but, rising costs of labor created challenges for the manufacturing sector, which has created a room for Pakistan in this area. However Chinese consumers are becoming more sophisticated in their shopping habits. They are moving away from traditional styles and are more inclined towards latest trends, quality, uniqueness and luxury products. Therefore, Pakistani exporters of Gems and Jewelry will have to ensure international standards and quality to attract Chinese market.

Furniture Industry

Pakistani furniture industry has exhibited astounding growth during the recent year. Exports of furniture from the country increased by 16.31 percent during July 2014 compared to the same months of last year, according to data of Pakistan Bureau of Statistics (PBS), Pakistan earned $0.770 million from the exports of furniture compared to the $0.662 million in July 2013, furthermore, the exports of furniture increased by 8.30 per cent in July 2014 when compared to the exports of $771 in June 2014.

furniture

Japan that has great scope for Pakistani Furniture, because they like Pakistani Traditional Hand-Carved furniture designs with classic finishing and similar designs can be replicated in China market, therefore efforts must be made to promote furniture exports by more regular participation in international shows.

All this can happen if there is government will and a vision amongst furniture traders. Joint ventures with China through trade commissions for providing machines on lease can bring product quality at par with highest international standards. But for this to happen, the furniture industry in Pakistan must vigorously transform from cottage or small scale industry to innovative industry through training, upgrading supplies and imports.

Quality export furniture is being produced at Chiniot, Gujrat, Peshawar, Rawalpindi and Karachi and the demand for Pakistani furniture has been rising Gujrat is also flourishing and contributing a large amount of foreign exchange earnings to Pakistan.

About 70 to 80 percent furniture is made of sheesham. The leading furniture making areas of Pakistan are Chiniot, Gujrat, Peshawar, Lahore and Karachi. In terms of exports, Karachi comes first, followed by Lahore and Peshawar. Pakistan’s major buyers of wooden furniture are the UK, the USA, Sri Lanka and Gulf countries like the UAE, Saudi Arabia, Oman and Kuwait. The United States buys mostly bedroom furniture. UK and the Gulf countries import kitchen furniture and office furniture. For example, the British retail chain Harrods sells some Pakistani furniture at its outlets. More than 80 percent of the furniture demand in the country is met by the Chinioti furniture. This industry, combined with the handicraft industry, is employing about 50,000 people.

Furniture with calligraphic engraving had great demand in local and international markets, which seems to be the dominant one in Pakistan, therefore Pakistani craftsmen should focus on working in this particular area to earn the much-needed foreign exchange.

Meat Industry

There is a big gap in world meat trade to be fulfilled and Pakistan has the potential to increase its export and earn foreign exchange by promoting Pakistan’s high quality meat worldwide. Pakistan has the 4th largest Livestock population in the world -180 million animals growing at 4.2% annually moreover there are above four dozens breeds of sheep and goats that have helped Pakistan become second largest goat meat producing country. But our exports are still lacking far behind because of having limited techniques and skilled labor. Chinese assistance can enhance the skills and Livestock techniques of Pakistani counterparts up to the world’s standard.

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There is a basic need to create and buildstate of the art slaughter houses to attract the Chinese market. Specific brands can be produced as per specific needs of Chinese people like -“Omasum” the second stomach of cows and buffaloes that is very much liked in Vietnam and China. By exporting meat to China we can contribute millions of dollars in the national economy and for this government of Pakistan is already convincing Chinese government to permit import of meat from Pakistan.

Chinese meat requirement is increasing rapidly with the growing economy as Chinese are turning away from their traditional diet of Rice and vegetables. Chinese farmers are unable to keep pace with demands of meat, because only 14per cent of China’s land is arable and to get meat you need more land, cattle feed and Water. China is short of all three basic requirements and has no way but to import meat from the international market.

Currently China is importing meet from Vietnam, Brazil and Australia, who are struggling to meet the demand while maintaining the standard too. Therefore in such a competitive environment there is a great possibility for Pakistan to initiate the production of good quality meat to cater the needs of Chinese Market. Viewing the increased demand, China is also considering importing meat from Pakistan.

Rice Industry

Considering the exportable surplus after catering for Pakistan’s domestic consumption, which is around 2.5 million MT, Pakistan is actually ready to export around 3.75 MT rice every year to China. China has emerged as one of the choice destinations for Pakistani rice exporters, as reflected in the 244% increase in rice export to the country during the last two years.

In Pakistan, new hybrid rice varieties are being developed which would give maximum yield by utilizing minimum input costs during water scarcity. Rice Research Institute has developed new techniques to cultivate rice through a broadcasting system instead of manual sapling plantation. Under the new technique, if farmers succeed in planting 80,000 plants in a field, they will get 6-8 mounds more production besides saving input costs up to Rs 14,000 per acre. This technique is not only cheaper but also helps save 30-35 % irrigation water.

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Dream of exporting around 10 million tons of irri-6 rice to China would be transformed into reality in the near future if sustained efforts to market Pakistani rice to China are pursued with vigor focusing attention to cater to the need of Chinese Population.

The response displayed by the Chinese importers for Pakistani rice is overwhelming as compared to rice imported from Thailand and Vietnam, as the Pakistani quality had attracted attention of Chinese importers for the eminence and Aroma of Pakistani Rice. Chinese buyers prefer to buy the rice with good milling quality.

The overall volume of rice exports from Pakistan during the last year, showed very encouraging trend registering the total volume of Rice exports up to 159,000 metric tons till December 2013 that valued to $56 million in foreign exchange.