ISLAMABAD: Federal Board of Revenue (FBR) has expressed concerns over the Phase II of Pak-China Free Trade Agreement.
According to the reservations of FBR, concessions under Phase ll would be to the detriment of Pakistan’s local industry are not justified.
Commerce Minister Muhammad Pervaiz Malik has conveyed to the FBR that on their reservations Ministry of Commerce has held extensive consultations with the industry and the government stakeholders including Federal Board of Revenue which is part of the negotiation team for Phase-ll China Pak Free Trade Agreement.
Based on the input of stakeholders, the already agreed liberalization level of 90%, in terms of tariff lines and trade value was strenuously renegotiated and brought down to 75% of tariff lines for both countries and 67 percent of trade value for Pakistan and around 90% for China, thereby getting an unprecedented non-reciprocity in favor of Pakistan.
The expanded protected list of 25% of tariff lines is more than sufficient to accommodate the concerns of our industry. In order to give further comfort to the local manufacturers against any possible injury and to safe guard provision under CPFTA has been revised in entirety, securing best terms ever extended by China to any FTA partner.
Similarly, a clause to address Balance of Payments difficulties, which was amiss in the Phase Il, has now been included. Ministry of Commerce has cleared that it is not correct that the Ministry of Commerce (MoC) has finalized the Phase-ll of China-Pakistan Free Trade Agreement (CPFTA) the negotiations on Phase II of CPFTA are still on going.
It is important to mention here, there was some news that revised free trade agreement with China entails the reduction of tariff lines.
