Federal Minister of Commerce speaking at the Pakistan Leather Show 2015. PHOTO: PID
Relations between the two countries have mostly been tense with the potential of bilateral trade never reaching its true potential.
Khan felt sustained peace would allow trade to flourish even more.
“It is a positive sign that despite tensions on the Line of Control last year, trade has not been affected,” he said, while speaking at the Pakistan Leather Show 2015. “But trade figures need peace to grow even further.”
Khan added that there was a need to move forward emulating the positive development made back in 2012. “It all depends on the possibility of trade without political tension and peace between the two countries as traders from both sides require that to surge businesses further.”
Besides India, the commerce ministry is working to find new export markets for Pakistan in Afghanistan and central Asian economies to boost export volumes as Khan believes it is the only solution to Pakistan’s dreary economic growth.
“We have intensified economic diplomacy with Afghanistan and Tajikistan to clear hurdles in transit trade and other matters,” said the commerce minister.
“It is now three months that political anarchy in Pakistan has ended, and with each passing day, we are heading towards political and economic stability and will turn the fortune of Pakistan.”
Khan further emphasised the ministry’s role to facilitate exporters, who are doing well after securing the Generalised System of Preferences (GSP- Plus status from the European Union. He said the new trade policy, which is expected to be announced midyear, will prove effective to further boost export volumes.
“Pakistan exports for the first 11 months of the previous year had already shown a growth of $1.16 billion or 20% over the last year,” he said.
“This shows that our products are compatible in European markets and the only thing our exporters need is a level playing field.”
For the development of the leather sector, Rs890 million have already been released by the export development fund, he said.
Earlier, Trade Development Authority Of Pakistan Chief Executive Officer SM Muneer said that the major issue the exporters are facing is the blockage of their sales tax refunds – an amount that has reached Rs110 billion.
It is not possible for exporters to increase volumes when the Federal Board of Revenue is not releasing the pending refunds, he complained. “If the FBR releases the blocked amount, I will guarantee an increase of exports up to $5 billion per annum,” said Muneer.
Published in The Express Tribune, March 7th, 2015.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ