Dynamics of Pakistan China Trade Through Khunjerb Border

This study summarizes the key findings of the focused group discussions conducted with officials of Sost Dry Port and Hunza Chamber of Commerce and Industries, border traders and clearing agents of Sost Dry Port in 2019. It highlights that the current prevailing situation of Pakistan border trade with China, nature of trade, the constraints and opportunities of border trade and identifies areas of actions that would improve and enhance livelihood options through border trade through the promotion of local products. It was revealed from the focused group discussions that at present the border trade is mainly dominated by China’s exports to Pakistan and nothing is being exported to China from Pakistan side. The Pakistani traders identified several constraints which are the major sources of limited trade from Pakistan including non-availability of government level border trade agreement between government of Gilgit Baltistan and Government of China, attitude of China’s immigration officials with Pakistani traders, lack of demand of Pakistani products in China owing to quality standards issues with Pakistan products, the closure of border for four month due heavy snow falling in the border areas. However, the participants of focused group discussion have also identified several local products that could be marketed in China if certain value addition is ensured and traders are given information about the latest market trends. These products include, Cherry, Chalgoza (Pinus gerardiana), fresh and dry fruits, minerals, herbs and local handicraft products. Based the focused group discussion, recommendations are proposed for government of Pakistan.