ISLAMABAD: The Ministry of Commerce is quite alive to the changing trend of national trade with countries whom Pakistan has granted the Most Favoured Nation (MFN) status.
In economic and political relations the MFN is a status or level of treatment accorded by one state to another in international trade. The term means the country which is the recipient of this treatment must, nominally, receive equal trade advantages as the “most favoured nation” by the country granting such treatment. Trade advantages include low tariffs or high import quotas.
“However, with a purpose to gauge the nature and volume changing trend of trade as well as its overall impacts on the national trade trends and national economy, the Ministry of Commerce is going to initiate a study” a well placed source at MoC told Customs Today.
The source said that as a matter of policy devised by the MoC, Pakistan had granted most favoured nation (MFN) status to all countries except Israel and India.
“Hence, it is difficult to compare the trends in trade as Pakistan has given market access to all countries without any discrimination. MFN principle as envisaged under the WTO is applied by Pakistan for trade with all the countries, yet MoC is quite alive to the changing trade trend” the source maintained.
Replying to a question about MFN status to Afghanistan the source said that both Pakistan and Afghanistan were members of South Asia Free Trade Agreement (SAFTA), and under this arrangement, both the countries are maintaining their respective lists of sensitive items and all other items except in the sensitive list could be imported through both the countries.
“Pakistan maintains a sensitive list of 938 items while Afghanistan maintains a sensitive list of 850 items and all other items, except these lists are importable into Pakistan from SAFTA countries including Afghanistan at tariff rate of 0-5%” the source observed.
“Besides these items, there are 16 items on which tariff rate is zero on MFN basis, in other words, they are imported without any import duties” the source maintained.
It is pertinent to note here that in effect, a country that has been accorded MFN status may not be treated less advantageously than any other country with MFN status by the promising country.
