Commerce Minister Khurram Dastgir Khan on Friday told the National Assembly that efforts were underway to sign Free Trade Agreements (FTAs) with ASEAN countries to promote trade and export with the 10-member states while the government was also in process to ink FTA-II with China.
Speaking in the House during question hour, he said that during the last five years, Pakistan signed only one Preferential Trade Agreement (PTA) with Indonesia in February, 2012, which became operational in September, 2013. He said that PTA with Indonesia would facilitate Pakistan's entry to ASEAN market while the government was also making efforts to sing FTAs with ASEAN countries to further promote trade and exports with these countries.
He said that China has promised to offer more facilities and market access to Pakistani products under the second phase of China-Pakistan Free Trade Agreement (CPFTA), which is under process to be signed between the two countries. He said that three rounds of dialogue have been held so far on the CPFTA. About advantages of singing PTA with Indonesia, he said that Indonesia provided preferential market access to Pakistan on 232 tariff lines. Out of these, 103 tariff lines which are of Pakistan's export interest are zero-rated and includes fresh fruits, cotton yarn/fabrics, readymade garments, fans, sports goods, leather goods and other industrial products.
He further said that Pakistan signed Mutual Recognition Agreement with Indonesia on 30th August 2013 for trade of horticulture products. As a result, export of Kinnow has increased to US $19.22 million in 2013-14 from US $3.2 million in 2012. To a question, he said that the country has suffered no loss due to the said PTA.
Responding another question, the minister said that Pakistan entered into bilateral FTAs with Sri Lanka, Malaysia and China in 2005, 2006 and 2007, respectively. He said that there was no evidence of drastic fall in the production of any of the cash crops and plantation.
He also rejected the impression of any negative impact of FTAs on any of the cash crops or plantation, adding that agriculture crops are generally protected as sensitive items in all FTAs. He said that during the negotiation phase of FTAs, all the stakeholders were consulted including Ministry of National Food Security & Research and Farmers Association of Pakistan to address concerns of the agriculture community. He said that the concerns of agriculture community were given due consideration while concluding FTAs.
He further said that Pakistan had been able to secure preferential treatment on agriculture products under FTAs. To another question, the minister said that Ministry of Commerce had secured preferential market access for pine nut in Pakistan's FTA with China and as a result the export of pine nuts to China has increased from $51 million in 2012-13 to $68 million in 2013-14 with an increase of 32 percent.
About the trade volume from 2013 to 2014, he said that the volume increased to $72,210 million in 2014 from $69,752 million in 2013. He said the volume of exports was $24,566 million while import was $47,644 million in 2014. Giving details about the sectors in which trade volume has increased, he said that the exports in petroleum group increased to $641 million in 2014 (January-December) from $513 in 2013 (January-December) while it increased to $13,685 million from $13,560 million during the same period.
He further said that Ministry of Commerce in strategic trade policy framework had set the target to increase Pakistan's cumulative export to $95 billion during 2012-15. Minister for Textile Industry Abbas Khan Afridi told the House that after resolving the issue of energy for industrial sector, 292 new industries have been registered. He said the new Textile Policy announced by the government would help promote value-added exports of the country.