ECC to approve new trade policies
Govt to push exports of agricultural goods, value-added textiles.
ISLAMABAD:
The federal government is set to adopt a series of proposals designed to promote exports and improve the country’s trade balance, said Commerce Minister Makhdoom Amin Fahim at a press conference on Thursday.
The commerce ministry has presented its proposals for consideration by the Economic Coordination Committee of the federal cabinet, which include measures to enhance the competitiveness of Pakistani exports, increase trade access to key foreign markets and restrict the imports of several items. The main objective of the amendments to the trade policy is to increase the exports of Pakistani agricultural products such as grains, fruits, vegetables and meat as well as value-added textile products, said Commerce Secretary Zafar Mehmood. He added that the government would seek to expand regional economic cooperation.
Pakistan will be seeking expanded access to the US, European and East Asian markets. According to Mehmood, China has already agreed in principle to grant tariff concessions to Pakistan on 286 items. The US government has also assured Islamabad that the Reconstruction Opportunity Zones legislation, which seeks to offer tariff-free access to Pakistani goods manufactured in areas affected by the Taliban militancy, would also pass this year.
Efforts to open up European markets, however, continue to lag behind. Late last year, the European Union had initiated a relaxation in its tariffs for Pakistani goods as a means of providing economic assistance to the country in the aftermath of the floods. However, the proposal remains mired in litigation at the World Trade Organisation after India, Sri Lanka and Bangladesh raised objections.
The commerce ministry has spent Rs5 billion in its efforts to expand Pakistani exports, though the ministry has been held back by a delay in the release of Rs27 billion in export promotion funds from the finance ministry.
Nevertheless, Makhdoom Amin Fahim remained optimistic about meeting export targets for fiscal year 2011. “This year Pakistan is in comfortable position to achieve a ten per cent growth target in exports, as the exports have shown a healthy growth of 21 per cent during first half of the year,” he said.
Some commerce ministry officials are upbeat that the country may even top Fahim’s target of $21.1 billion in exports and reach $24 billion, based on the trajectory in the first half of the current fiscal year.
The ministry has also recommended liberalising some regional imports while curbing others. For instance, the prime minister has agreed in principle to allow the import of chemicals and dyes from India, though only via rail since some cabinet ministers reportedly voiced concern over expanding trade via the road route at Wagah.
Pakistan has also decided to ban the import of commercial imports of used edible oil under the garb of soap stock. It has also in principle decided to ban the import of used lubricants, hydraulic and transformer oils. Through another amendment Islamabad has banned the export of poplar wood to Afghanistan. In order to regulate the imports of toys for infants a quality assurance certificate has been made compulsory from the exporter.
To curb cigarette manufacturing by unregistered manufacturers the import of cigarette making paper will now only be allowed to the registered manufacturers. The government also decided to allow the import of air guns, ring blaster and bolder ballistic guns.
Published in The Express Tribune, February 4th, 2011.
The federal government is set to adopt a series of proposals designed to promote exports and improve the country’s trade balance, said Commerce Minister Makhdoom Amin Fahim at a press conference on Thursday.
The commerce ministry has presented its proposals for consideration by the Economic Coordination Committee of the federal cabinet, which include measures to enhance the competitiveness of Pakistani exports, increase trade access to key foreign markets and restrict the imports of several items. The main objective of the amendments to the trade policy is to increase the exports of Pakistani agricultural products such as grains, fruits, vegetables and meat as well as value-added textile products, said Commerce Secretary Zafar Mehmood. He added that the government would seek to expand regional economic cooperation.
Pakistan will be seeking expanded access to the US, European and East Asian markets. According to Mehmood, China has already agreed in principle to grant tariff concessions to Pakistan on 286 items. The US government has also assured Islamabad that the Reconstruction Opportunity Zones legislation, which seeks to offer tariff-free access to Pakistani goods manufactured in areas affected by the Taliban militancy, would also pass this year.
Efforts to open up European markets, however, continue to lag behind. Late last year, the European Union had initiated a relaxation in its tariffs for Pakistani goods as a means of providing economic assistance to the country in the aftermath of the floods. However, the proposal remains mired in litigation at the World Trade Organisation after India, Sri Lanka and Bangladesh raised objections.
The commerce ministry has spent Rs5 billion in its efforts to expand Pakistani exports, though the ministry has been held back by a delay in the release of Rs27 billion in export promotion funds from the finance ministry.
Nevertheless, Makhdoom Amin Fahim remained optimistic about meeting export targets for fiscal year 2011. “This year Pakistan is in comfortable position to achieve a ten per cent growth target in exports, as the exports have shown a healthy growth of 21 per cent during first half of the year,” he said.
Some commerce ministry officials are upbeat that the country may even top Fahim’s target of $21.1 billion in exports and reach $24 billion, based on the trajectory in the first half of the current fiscal year.
The ministry has also recommended liberalising some regional imports while curbing others. For instance, the prime minister has agreed in principle to allow the import of chemicals and dyes from India, though only via rail since some cabinet ministers reportedly voiced concern over expanding trade via the road route at Wagah.
Pakistan has also decided to ban the import of commercial imports of used edible oil under the garb of soap stock. It has also in principle decided to ban the import of used lubricants, hydraulic and transformer oils. Through another amendment Islamabad has banned the export of poplar wood to Afghanistan. In order to regulate the imports of toys for infants a quality assurance certificate has been made compulsory from the exporter.
To curb cigarette manufacturing by unregistered manufacturers the import of cigarette making paper will now only be allowed to the registered manufacturers. The government also decided to allow the import of air guns, ring blaster and bolder ballistic guns.
Published in The Express Tribune, February 4th, 2011.