Commerce Minister Engineer Khurram Dastgir said on Wednesday that the government would remove 10 percent Regulatory Duties (RD) on fine yarn but RD on coarse yarn will remain intact. Talking to a group of reporters, he said All Pakistan Textile Mills Association (APTMA) which had earlier approached him for imposition of RD was now asking for removal of the duty.
"We are going to amend the policy and recommend that RD on coarse yarn should remain intact so that local producers may get some space but RD on fine yarn, which is the requirement of value added sector, should remain intact," he added. Commerce Minister stated that some Pakistani buyers were importing cotton from US and Central Asia to meet their requirements.
In reply to a question, he said that except cotton, back to back bumper crops were expected which had become a problem for the government. He, however, said that Pakistan was a protectionist country. "We are a protectionist country. Business communities, major experts and general way of thinking in Pakistan are still highly protectionist. This protectionist mindset is impeding Pakistan''''s integration into the global economy and stopping us from becoming part of international value added chains," he added. In reply to a question, Commerce Minister stated that the government would discontinue sugar export if prices in the local market increased by 10 percent.
Answering another question regarding undue delay in announcement of Strategic Trade Policy Framework (STPF 2015-18) Commerce Minister said the draft had been submitted to the Prime Minister and he was waiting for the final word from the Prime Minister. In reply to a question, the Minister for Commerce said he was facing capacity issues in the Ministry and looking for competent people but if such people were not available then the current lot was fine as the Ministry had also to do routine office work. He said the Ministry needed articulation.
Replying to another question regarding relations with US, the Minister for Commerce stated that there was a status quo. "US has revived GSP for Pakistan and Pakistan has been a part of this scheme for the last 35 years. Pakistan''''s normal trade is on with the US but the issue of concessions is unexpected to be given during the incumbent US Administration, Congress and Senate."
On a question regarding second phase of Free Trade Agreement (FTA) II with China, Commerce Minister said the issue of concessions in second phase was still unsettled. "The process is at the standstill at the moment and we are waiting for higher level dialogue to resolve the issue of concessions which has risen recently," he added. He was of the view that China had not shown any readiness to give 90 percent access to Pakistan to its markets from the current 35 percent under the previous FTA.
Talking about FTAs with some of the ASEAN countries, he said Pakistan was keen to give all those concessions to those countries including Thailand and other member countries which had already given to China. "This move will not only give us access to these markets, but Pakistani goods will have the same concessions which are available for Chinese commodities there. This will be on the reciprocal basis", he stated.
He mentioned that FTA with Thailand was in the final stage and Pakistan saw Thailand as gateway for the access to the ASEAN countries, which was at the strategic location. The minister said Pakistan and Thailand had agreed on the framework of the FTA agreement, which would be signed shortly.
The Commerce Minister noted that Pakistan''''s business community and experts were highly protective, which was creating impediments in the integration in the international markets. The Minister said there was zero progress as far as improving trade relations with India. However, there was some headway as far as the trade agreements with Afghanistan, he added. He said Afghanistan was ready to incorporate the TIR agreement in the transit trade agreement and now Pakistani containers would not be charged which would go under the TIR agreement after the country becoming its member since January 21 this year.
Talking about the latest developments about Pakistan and Iran bilateral trade after lifting of sanctions from it, he said Commerce Ministry had just been informed that the ban on the Iranian banking sector had been lifted, which was the key hurdle in initiating of the trade with the neighbouring country. He said a delegation would soon leave for Iran led by Minister for National Food Security and Research for talk on certain bilateral trade related issues. The Minister for Commerce further stated that talks with Turkey on FTA would commence within a couple of weeks. "Agreement on FTA''''s framework is reached after some deliberations and now Turkish Minister for Economy will visit Pakistan and we will sign the agreement," he added.
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