ISLAMABAD: The Most Favoured Nation (MFN) status has been both tangible and intangible trade benefits for Pakistan because Pakistan enjoys non-discriminatory market access of MFN countries.
Pakistan being member of WTO has extended Most Favoured Nation (MFN) status to all WTO member countries except India and Israel. The extension of MFN as member of WTO is a reciprocal measure, therefore, the other 163 WTO members have extended MFN status to Pakistan.
A well placed source at Ministry of Commerce (MoC) told Customs Today that in the case MFN treatment Pakistan enjoys non-discriminatory market access to these countries. Therefore Pakistan’s overall trade was $ 62.324 billion in fiscal year 2015-16 out of which Pakistan’s exports were S$ 21.98 billion and imports were worth $ 40.34 billion.
The source said that Pakistan had remained in the forefront of multilateral trade negotiations by virtue of belonging to the WTO. The commerce minister has been invited to select gathering of WTO members in 2015 and 2016.
To a question about possible impacts of Brexit on Pakistan, the source said that Pakistan enjoyed close and friendly relations with the UK therefore Brexit was unlikely to have any major impact on bilateral trade and commerce relations with the UK, the EU and its member states.
With the UK, it may in fact witness a boost through the bilateral and Commonwealth tracks” the source said adding that bilateral trade with the UK could increase in the event of a favourable preferential trade agreement between the two countries.
Moreover, the source said that with Britain’s exit from the EU, Pakistan would however, lose a close friend and supporting voice in the EU, particularly on economic matters such as GSP plus. Pakistani exporters aiming for the EU market would have to find another first port of entry after the UK exits the Union.
The source observed that Pakistan must negotiate a preferential trade agreement with the UK and enhance competitiveness of our exports, through diversification and value addition. Commerce Ministry is already focused on this issue.
