Over the past 70 years, the two countries have crossed numerous milestones of mutual development. The people of both the countries are currently benefiting from the promotion of the second phase of the China-Pakistan Economic Corridor. A significant part of these fruits is also being reaped due to the China-Pakistan Free Trade Agreement reached between the two countries in 2019. Last weekend, I had the opportunity to meet the Commercial Consul at the Pakistani Embassy in Beijing, Mr. Badralzaman. In an informal conversation, he highlighted the Pakistani embassy's efforts to improve the trade balance between the two countries. He said that these efforts include the personal interest of the Ambassador of Pakistan Mr. Moinul Haq and the full cooperation of the concerned Chinese authorities.
The conclusion I have drawn from Mr. Badralzaman's speech is that the improving trade balance between the two countries will have a very positive impact on the Pakistani economy. According to Chinese Customs, Pakistan's exports to China in the first half of 2021 were 1. 1.73 billion, an unprecedented growth of 84%. It is generally expected that this number will cross the 3 3 billion milestone by 2021. These figures show that the second phase of the trade agreement is moving forward effectively, increasing bilateral trade in terms of imports and exports, facilitating Pakistani businesses to increase their economic presence in the Chinese market. Significant increase in Pakistani exports to China has opened up the Chinese market which also reflects the growing popularity of Pakistani products.
At present, Pakistani manufacturers and traders are allowed to export about 313 new products to the Chinese market with zero duty. The increase in Pakistani exports to China has diversified the country's trade potential and laid the groundwork for maintaining trade balance with the world's second largest economy. A recent World Bank report estimates that Pakistan has the potential to increase its annual exports to 88 88.1 billion.
Under the leadership of Prime Minister Imran Khan, the country has a consistent policy to increase imports in the global market. To this end, the government has adopted business-friendly policies and provided huge financial incentives to increase imports. Free trade agreements with other countries such as China have also been finalized. The increase in imports of Pakistani products to China has also helped in economic recovery during epidemics.
Following the successful editions of the China International Import Expo Shanghai, China's imports are growing rapidly amid strong recovery during the Kuwait 19 outbreak. China's growing import power is helping many countries, including Pakistan, revive their economic activities. From January to July, the country's total imports and exports rose 24.5 percent year on year to 21.34 trillion yuan, according to the Chinese Ministry of Commerce.
China has adopted a strategy of sharing the profits of its economic performance with other partner countries with Beijing under various platforms, including the Belt and Road Initiative. Is going to The multi-billion dollar C-Pac project has played an important role in agricultural cooperation, vocational training, poverty alleviation, socio-economic development and establishment of industrial zones in Pakistan.
C-PAC has also provided significant opportunities for Pakistani businesses to increase trade activities with China by reducing the cost of land transportation. With the implementation of C-Pack, Pakistani industries have also been strengthened, Pak-China trade has been boosted and Pakistan is helping to establish world-class production centers in various provinces. Economists are hopeful that if C-Pack If the pace of PAC and related agreements does not slow down, it will soon have more positive effects on the Pakistani economy.
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