ISLAMABAD: The Federal Board of Revenue (FBR) has issued a list of 133 items on which concessionary rate of customs duty or reduced import duties/Additional Customs Duties (ADCs) would be applicable from May 1, 2023.
In this regard, the FBR issued an SRO 502(I)/2023.
According to the SRO, the FBR has notified the list of items in line with the Pakistan and Turkiye Trade in Goods Agreement (TGA) to grant exemption from customs duty to the extent specified in SRO 502(I)/2023.
The FBR said that the imports from Turkiye are made in conformity with the Pakistan and Turkiye Trade in Goods Agreement Rules of Origin 2023 as notified by the Ministry of Commerce under the said agreement.
Pakistan and Turkiye had signed Trade in Goods Agreement (TGA) aimed at increasing bilateral trade between the two countries to US$ 5 billion in the next three years. The trade agreement was the key agenda during the visit of Prime Minister Shehbaz Sharif to Turkiye in May 2022.
The agreement provides immense opportunities as Turkiye has immense experience in constructing hydel project and Pakistan want Turkish companies to come and invest in Pakistan because an immense hydel potential remained untapped.
The agreement on trade in goods is an important breakthrough in improving the economic relations between both countries. Under the agreement, Pakistan’s exporters will have market access in Turkiye in 261 tariff lines covering both agriculture and the industrial sector.
Pakistan’s exporters will have market access in traditional sectors such as leather, rice, dates and mangoes, cutlery, and sports goods. In addition, exporters will also have market access in many non-traditional sectors such as tyres, fans, batteries, glass, ceramics, plastics, fisheries, processed agriculture, razors, furniture and base metals.
Turkish import market in the sectors covered under the agreement amounts to US$ 7.6 billion highlighting a significant potential for Pakistan’s exporters to increase their market share.
