Pak-China ties: Exporters aim to reduce trade imbalance

Local textile exporters to make list of zero-rated products for next stage of free trade agreement talks.

KARACHI:

The Trade Development Authority of Pakistan (TDAP) has asked local textile exporters to make a list of zero-rated products for the next stage of free trade agreement talks with China in order to balance its trade with the export giant.

Chief Executive of TDAP Tariq Iqbal Puri in a meeting on Tuesday with exporters decided to come up with a list of new products by month-end. Zero-rated products are those that are subject to no value-added tax when sold.

Industrialist Mirza Ikhtiar Baig on the occasion said that Pakistan’s share is just $1.5 billion from the annual trade of $8.5 billion between China and Pakistan. Puri urged exporters to list down products that can compete internationally and have surplus production in the country in order to decrease trade imbalance with China.

TDAP also asked other associations to send their suggestions to speed up preparations for the free trade agreement talks with China. TDAP plans to send its suggestions to ministry of commerce and hope that the new list will be added in the final list of products by January 2012.

Chinese premier Wen Jiabao on his recent visit to Pakistan assured to help increase Pakistan’s exports to China to reduce the trade imbalance which is heavily in favour of China.

Published in The Express Tribune, June 15^th, 2011.