ISLAMABAD: The Commerce Ministry on Wednesday showed its wrath against the Finance Ministry for not making its export growth-related recommendations part of the federal budget 2024-25, despite the fact that those already sailed through Tariff Policy Board (TPB), an inter-ministerial body which takes decisions on revision of tariffs on goods.
The Commerce Ministry’s stance was shared by the Additional Secretary (Incharge) Commerce Ministry, Ahsan Mangi while giving a detailed maiden presentation to the newly constituted Senate Standing Committee on Commerce, headed by Senator Anusha Rahman Ahmad Khan.
Ahsan Mangi informed the Committee that Commerce Ministry had submitted a number of recommendations to the Finance Ministry and Federal Board of Revenue (FBR) for revision in tariff lines of several items aimed at growth in exports which touched $ 30.581 billion with 13.8 per cent growth.
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However, its recommendations which suggested reduction in tariffs have been ignored entirely by those who made the budget while recommendations meant to increase tariff on imported items have been approved.
Mangi further stated that Commerce Ministry has raised this issue at different fora but nothing has been done, adding that he would share correspondence of Commerce Ministry with other stakeholders for changes in tariff lines with the Committee.
Joint Secretary (Trade Policy), Muhammad Ashfaq, who actually belongs to FBR and is on deputation to Commerce Ministry argued that during the meeting of TPB, officials of budget making entities had not endorsed Commerce Ministry’s recommendations on lowering tariffs but that the Board had approved those recommendations.
He was challenged by Chairman Standing Committee on Finance, Senator Saleem Mandviwalla and Senator Anusha Rahman who is also Member of Senate Committee on Finance on the grounds that he did not say a word against Finance and FBR during the meeting of Senate Standing Committee on Finance.
Saleem Mandviwalla suggested that Commerce Ministry can still share its recommendations with Senate Standing Committee on Finance to make them part of official record so that the House may be informed which of its budget recommendations have not been adopted by the government.
Commerce Standing Committee was further informed that Pakistan has made it clear to China that the existing Free Trade Agreement (FTA) is not beneficial for it and requested a revision. Pakistan has prepared a list of over 400 items in consultation with trade bodies and shared with Beijing in which Islamabad has sought same trade incentives which are available to ASEAN countries.
A total of 12 product protocols were signed recently with China for export of onions, cherries, beef, chillies, dairy products, donkey hides, etc.
During discussion, Chairperson Senate Standing Committee stated why only hides, why not the entire donkey be exported to China.
Responding to the query, Additional Secretary Incharge stated that currently hides can be exported and protocols are being discussed for export of the entire donkey.
Taking part in the discussion, Senator Sarmad Ali said that if donkeys’ hides are exported then what happens to the meat, is it sold in the domestic market, generating general laughter.
Additional Secretary Incharge said that there is no ban on export of donkeys to China, adding that he has heard that farming of donkeys is also in progress in Pakistan.
Additional Secretary Incharge further stated that Commerce Ministry has recommended opening of nine new Missions abroad including Africa, where Pakistan performed well in recent years given the special focus to Look Africa Policy.
Replying to a question he said that Pakistan prepared legal framework for trade with Iran and Russia, drafts of which have been shared with both countries. Russian delegation is expected to visit Pakistan for further negotiations on the proposed legal framework on trade.
Pakistan has also started trade with Central Asian Republics through China. He, however, acknowledged that things in Pakistan move at a slow pace.
He apprised the Committee that trade pact will be signed with Azerbaijan during the visit of Azerbaijan President Ilham Aliyev. He is expected to visit Pakistan from July 11-12, 2024.
He said that negotiations on Free Trade Agreement (FTA) between Pakistan and GCC have concluded. Pakistan has also shared a strategic trade framework with Saudi Arabia.
The Commerce Ministry maintained that biannual review of EU GSP plus and GSP has been completed and the EU has granted extension till December 2027 or until new GSP scheme is launched. However, there is a possibility that the new EU Parliament may approve new GSP with additional conditionalities.
Sharing update on Afghanistan, the Commerce Ministry said that Pakistan strategy to curtail transit trade, which was hurting Pakistan’s industry and revenue, has been successful as transit trade of those items have been reduced significantly.
Trading Corporation of Pakistan noted that it is paying $ 0.6 million dollars’ interest daily on loans availed from different banks for commodities import and operations as recipient Organisations / entities are not discharging their liabilities citing different excuses.
TCP’s current debts and liabilities stood at Rs 281.907 billion as of June 30, 2024, of which principal amount was Rs 93.692 billion whereas Rs 188.215 billion is mark up.
TCP sought support of Standing Committee for recovery of long outstanding amount receivables from various recipient agencies (provincial and federal) and for intervention in the commodity market at “No Cost to the Government of Pakistan,” for price stabilization. TCP has also requested Standing Committee to help settle property dispute with Port Qasim and Multan Industrial Estate (29 acres of land).
Additional Secretary Incharge opposed privatisation of State Life Insurance Corporation of Pakistan, National Insurance Company Limited and Pakistan Reinsurance Company Limited, claiming these three companies have strategic worth.
Copyright Business Recorder, 2024
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