By Azam Tariq

China’s expanded zero-tariff offer to African partners has sparked debate in Pakistan about how preferential market access can translate into stronger exports. Analysts argue that tariff concessions, while helpful, are not enough on their own; without reliable supply capacity, stronger compliance and certification systems, and smoother trade facilitation, Pakistan cannot fully capitalize on such opportunities.

China has announced that it will grant zero-tariff access to imports from 53 African countries with diplomatic ties starting May 1, 2026, presenting the move as part of a trade-led development approach while highlighting practical requirements such as standards, testing and logistics. Pakistan, meanwhile, has enjoyed preferential market access under the China-Pakistan Free Trade Agreement (CPFTA) since 2006, yet export growth to China has remained limited.

Manzoor Ahmed, who has served as Pakistan’s ambassador to the World Trade Organization and as the Food and Agriculture Organization’s representative to the United Nations in Geneva, told Wealth Pakistan that Pakistan’s experience under CPFTA demonstrates that tariff reductions alone do not guarantee export expansion.

He noted that although bilateral trade between Pakistan and China has grown significantly since the agreement was implemented, the growth has largely been one-sided, with China’s exports to Pakistan increasing far more rapidly than Pakistan’s exports to China, widening the trade deficit.

Ahmed compared Pakistan’s export performance with countries such as Vietnam, Malaysia and Indonesia, which have recorded much stronger export growth in the Chinese market. He said tariff preferences are becoming less decisive because China’s average industrial tariffs are already relatively low and Beijing has signed multiple free trade agreements with other countries.

To convert preferential access into sustained export growth, Ahmed said Pakistan needs to reform its trade and industrial policies by lowering high import tariffs and other levies that raise input costs for exporters. He also suggested easing protectionist policies that keep firms focused on the domestic market and encouraging deeper regional integration so Pakistan can integrate into parts-and-components trade and global value chains.

Hina Ayra, a trade facilitation expert in the federal government, told Wealth Pakistan that under CPFTA the immediate task is not negotiating additional tariff concessions because Phase II of the agreement already provides substantial preferences for Pakistani exports.

She said Pakistan should instead focus on a limited number of scalable export categories while strengthening supply reliability and production consistency to ensure exporters can meet market demand.

Pakistan could prioritise around 10 to 15 high-potential export sectors, including value-added textiles, processed foods, fisheries, halal meat and certain light engineering goods, while ensuring certification readiness and logistics alignment so that preferential access translates into actual shipments, she said.

Ayra emphasised that improvements in trade facilitation are essential for exporters to benefit from tariff preferences. She said exporters frequently face delays caused by documentation procedures, port congestion, inconsistent application of rules of origin and repeated product testing upon arrival in China, which erode competitiveness.

To address these issues, she recommended strengthening customs cooperation between Pakistan and China through customs data exchange, pre-clearance mechanisms, mutual recognition of inspection certificates and faster dispute resolution systems.

She also highlighted the importance of digital verification systems, advance rulings on product classification and stronger institutional coordination between Pakistani and Chinese customs authorities.

Ayra said Pakistan must also address domestic bottlenecks related to standards and testing capacity, noting that laboratories are not internationally accredited at the scale required and traceability systems, particularly for agro-products, remain weak.

She added that exporters sometimes face rejection in the Chinese market despite tariff eligibility because of packaging non-compliance and incomplete traceability documentation, while rules-of-origin paperwork remains a recurring challenge for many firms, particularly small and medium-sized enterprises.

She recommended investing in national quality infrastructure, accredited laboratories, sanitary and phytosanitary compliance systems, digital traceability mechanisms and exporter training to help ensure that market access translates into sustained export growth.

Observers say Pakistan’s experience shows that preferential access produces results only when it is supported by effective execution. Aligning industry capacity with scalable export sectors, improving customs coordination to reduce shipment delays and strengthening standards, traceability and documentation systems could help Pakistan convert trade preferences into durable export momentum.

Credit: INP-WealthPk