ISLAMBAD: Caretaker Federal Minister for Commerce Gohar Ijaz has described the first Free Trade Agreement with Gulf Cooperation Countries (GCC) as a "big breakthrough" for Pakistan.
Addressing a press briefing on Wednesday after the Special Investment Facilitation Council (SIFC) meeting presided over by the caretaker Prime Minister, Anwaarul Haq Kakar, the Minister for Commerce said that during the fifth round of GCC meeting after 14 years first free trade agreement has been signed with Pakistan. He said that GCC market exports stood at $1,000 billion and import at $500 billion, and Pakistan's share is $19 billion as Pakistan imports energy from them and export share was $2.5 billion.
He said that Pakistan's trade deficit was $17 billion and Pakistan's objective is to explore and open this market and Saudi Arabia played a very important role in this development.
The caretaker commerce minister said that the GCC countries have signed free trade agreement with Pakistan and this is positive news for Pakistan's exports towards Gulf countries.
He added that a detailed discussion was also held on overseas Pakistanis in Saudi Arabia and making a mechanism for them to comply Pakistani workers with their new laws.
He said that the industry would get energy on priority basis to increase the exports and one step taken by the caretaker government from the SIFC forum that Afghan Transit Trade Agreement right law was made and those goods which were coming to Pakistan $4 billion under ATTA was increased to $6.7 billion after government imposed restriction on LCs.
He said on all the smuggling prone item negative list and their genuine trade would be facilitated and asked them to pay bank guarantee equal to the amount to the duty of the goods and fee of 10 per cent for infrastructure use.
He said dollar is now at around Rs280 following crack down on those who have been sending dollar through smuggling, the increase in dollar was being derived through Hawala. He said that country would increase $5 billion exports provided energy is provided to the industry. He said that hope record crop of cotton and rice would increase the export.
Caretaker Minister for Energy Muhammad Ali said that crack down on electricity is continuing and so far, Rs16 billion have been recovered so far. DISCOs boards of directors have almost finalised. He said that an important decision was taken with regard to DISCOs and finally it was decided that give them on long-term concession private sector would be engaged to hand over DISCOs management to them.
On gas issue, he said that two LNGs cargoes have been finalised and December gas issue of industry would be resolved.
PIA's privatisation was discussed in detail and it is on the highest priority.
Caretaker Minister for Interior Sarfraz Bugti said that firing incident on Chaman Border caused two casualties and we demand that culprit should be handed over to the government.
He said that our security forces have shown patience and any reaction by them would have led to more casualties because of civilian activities. We will win against terrorism. He said that gas load-shedding would continue in the winter because of insufficient gas and past year routine would continue. He said that as opposed to last year, this year 18 per cent natural gas has declined and demand is more compared to supply, therefore, gas load-shedding at home to continue.
Replying to questions, Ejaz said that the Saudi Arabia and the UAE investment is part of the GCC and FTA agreements. Saudi investment would come through these agreements.
He said that Rs 1 trillion tax evasion would be avoided under Afghan transit per annum. He said that identification of items that Afghan was in need of and 100 per cent bank guarantee and 10 per cent transit fee have led to appreciation of rupee. After these measures, he said that smuggling could not be possible.
Muhammad Ali said the strengthening of rupee's impact would be on the energy prices.
Copyright Business Recorder, 2023
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