Import of AC, other products: Malaysian CG terms raise in RD 'a violation of FTA'

Consul General of Malaysia, Khairul Nazam Abd Rahman while expressing concern over the decision taken by Pakistan's Ministry of Commerce to increase Regulatory Duty on import of air conditioners and other such products, has said that the decision was notified through SRO which is a violation of Pakistan-Malaysia Free Trade Agreement (FTA) therefore it needs to be reviewed.
Speaking at a meeting of Karachi Chamber of Commerce & Industry (KCCI), he said that instead of increasing tariff through imposition of Regulatory Duty, the government may come up with some kind of system in which a win-win situation is created and Malaysian exporters are not affected.
Khairul Nazam further commented that although Pakistan and Malaysia have signed FTA but not much momentum in trade has been witnessed which also requires special attention and efforts from both sides. He emphasized on regular exchange of trade delegations and participation in trade promotional activities in both countries to boost the existing relations between both countries.
Highlighting some of the potential areas, Malaysian CG advised the Pakistani exporters to look into the possibility of exporting Basmati, IRRI-6 rice and mangoes to Malaysia which were being offered at competitive prices while the Malaysian business community can also look into the possibility of venturing into various infrastructural projects in Pakistan, particularly the 5 million houses scheme announced by the government which was a good opportunity.
President KCCI Junaid Esmail Makda said that Pakistan-Malaysian relations were expected to improve further as the present government was taking various measures in this regard.
Referring to concerns expressed by Malaysian CG on RD imposition, Junaid Makda said that numerous diplomats including the German consul general also expressed similar concern over the imposition of RD but this step has been taken by the government to purely discourage unnecessary imports of luxury items as under the prevailing circumstances, Pakistan was not in a position to spend billions of dollars on imports of luxury items.
However, Junaid Makda assured the Malaysian CG that KCCI would discuss this particular issue pertaining to RD on air conditioners with PM's Advisor Abdul Razzak Dawood and Finance Minister Asad Umer as Pakistan cannot retreat from its commitments made under FTA with Malaysia.
Highlighting the trade and investment potential of Karachi, which is the economic hub of Pakistan, he said that this city offers profitable investment opportunities and facilities for trade, investment and joint ventures to Malaysian business community.
Junaid Makda said, "There is huge potential for joint ventures and investment in the areas of Islamic Finance, Halal food industries, energy, low cost housing, infrastructure development, telecommunications and education." Malaysia was a potential market for Pakistani fruits and vegetables like mangoes, oranges, onions and potatoes, he added.
Referring to Pakistan's splendid and hardworking human resource, he said that there was a great potential for Pakistan to export its skilled, technical and educated human resource to Malaysia. Senior Vice President Khurram Shahzad, Vice President Asif Sheikh Javaid, Chairman Diplomatic Missions & Embassies Liaison Sub-committee Shamoon Zaki and managing committee members were also present on the occasion.