Pakistan is all set to sign free trade agreements with Iran and Sri Lanka, while talks for FTA with China would be initiated during Prime Minister's visit to that country. This was stated by Commerce Minister Humayun Akhtar at a press conference at Export Promotion Bureau (EPB) here on Saturday.
He said that the FTA with Sri Lanka would be signed during Lankan President's visit to Pakistan in next January. Pakistan will sign South Asian Free Trade Agreement (Safta) in January 2006 and the agreement would be fully implemented by 2015, he said.
The minister said that President Musharraf, during his visit to USA, had asked President Bush to start a dialogue for FTA with Pakistan because Pakistan needs trade and not aid.
He said that never before in its history Pakistan had launched such a vigorous lobbying to get a place in the new GSP scheme to be enforced from July 2005. The intense lobbying would be launched by the Commerce Minister himself in all EU states capitals, while Prime Minister Shaukat Aziz would address the Ambassadors of EU member states in Islamabad, emphasising Pakistan's eligibility for duty-free market access.
Humayun said that Pakistan had called on the EU Commission to include Pakistan in the 'GSP Plus' scheme for zero duty access, or formulate new criteria for countries fighting against terrorism and incurring huge amounts on it. The trade facilitation under the GSP would enable Pakistan to provide jobs to millions and reducing poverty, which is one of the major factors to incite people to anti social activities, he added.
With regard to textile quota problem he said that the government would air freight all textile quota shipments held up in the country due to embargo in certain categories. As far as shipments held up at US ports, talks were underway with the US government about the fate of such over-shipped goods. The decision would depend on the quantity of goods reached at the US ports after the declaration of embargo.
Humayun said that he did not want to be involved in the dispute between EPB and exporters about the mismanagement of textile quotas, which is the result of accumulation of quota problems over the years. The problems were the result of discrepancies in figures, excessive over-programming and use of certain quotas more than one time.
He said that quota problems date back to the period when he was not commerce minister. However, after taking over he strictly controlled over-programming. "I have now decided not to indulge in the exercise of fixing blames for the quota mess-up because EPB, Quota Supervisory Council, auditors and textile associations had been jointly handling quota affairs." He said he has evolved a solution of the problem by way of air lifting the stuck up shipments at government expense cost in January when there would be no quota restrictions. Most of the exporters were happy with the arrangement, he added.
The Minster said that the country was well-equipped in terms of expansion in production facilities, technology and cost of manufacturing to enter the quota-free period and, except for garment sector, exports of all textile sectors would grow significantly. There were two summaries regarding support package for garment sector, and duty drawback on filament yarn, pending with the ECC for approval, he said.
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