ISLAMABAD: Pakistan and Philippines have agreed to review conventions on the Avoidance of Double Taxation and ease of doing business, sources said.
The two countries also agreed to explore possibilities for mutual cooperation in customs matters, the sources said, adding that both the countries earlier signed two economic agreements, the Philippines-Pakistan Trade Agreement and the Philippines-Pakistan Agreement for the Promotion and Reciprocal Protection of Investment in 1961 and in 1999 in Manila, respectively.
“Over the first five years, total bilateral trade increased from $34 million in 2004 to $151 million in 2008. The year 2008 registered the highest trade balance between the Philippines and Pakistan, amounting to $62,407,160 in favor of the Pakistan,” the sources added.
The sources said that in 2009, total trade between the two countries decreased enormously. Philippines exported $39 million worth of goods to Pakistan, with $47 million worth of imports from Pakistan, which lowers Pakistan balance of trade amounting to $7.8 million.
“Top exports to Pakistan include garments, paper products, pharmaceuticals, cosmetics, dairy products, processed fruits, coconut products, tobacco, electronic components and machineries, iron, steel, cement and chemicals,” the sources maintained.
The sources said that top imports from Pakistan include house wares processed foods, dairy products, marine products, fresh foods, tobacco, textile yarns and twines, and industrial products. The substantial rise in imports in 2008 was mainly due to the purchase of inexpensive pharmaceuticals. There is potential for the export of coconut and coconut products halal food and edible oils.
However, the sources said that in March last year, Pakistan struck an unprecedented deal with Philippines for the export of hybrid rice seed to the Southeast Asian nation.
Now at the platform of JEC Pakistan–Philippines agreed to re-activate the Pakistan-Philippines Joint Business Forum/Council with the participation of the Chamber of Commerce and Industry of Philippines and Federation of Pakistan Chamber of Commerce and Industry of Pakistan (FPCCI).
Both sides agreed to hold and actively participate in trade fairs, single country and product based exhibitions in each other’s country on a regular basis. JEC also agreed to conduct feasibility studies on the possibility of Preferential Trade Agreement and to the formation of a Technical Working Group within the JEC for this purpose.
JEC met here co-chaired by Secretary, Economic Affairs Division Arif Ahmed Khan and Deputy Minister, Industry Development and Trade Policy Group, (IDTPG) Department of Trade and Industry, Philippines Dr. Ceferino S. Rodolfo and held detailed discussions between experts of the two sides on a number of issues, especially focusing on trade, investment, energy, agriculture, tourism, health, industries and other matters of mutual interest.
At the concluding session both the countries signed a protocol of the session based on major actions / decisions. Both sides presented prospective export products for each other’s markets. In this regard Pakistan side offered Rice, Fruit (especially Pakistani citrus and Mangoes), Leather Garments, Pharmaceutical Goods, Sports Goods and Surgical Items while Philippines’ side presented electronics and semi conductors; automotive parts and components; processed food and Halal Products.
Pakistan offered Philippines investment opportunities in Power sector of Pakistan in renewable energy and small hydro power projects and training in the areas of hydro carbon like exploration, production, processing and survey etc. The two sides agreed to collaborate in the area of post-harvest management and processing of rice and banana.
Pakistan invited Philippines to invest in construction of Highways in Pakistan on Build, Operate and Transfer (BOT) basis. Philippines shared investment opportunities for Pakistan pharmaceutical and medical equipment manufacturing in the Philippines. The Parties mutually agreed for exchange of visits between the officials of Central Banks of the two countries.
Both sides deliberated upon and agreed to review the proposals regarding revision of the convention on the Avoidance of Double Taxation between Pakistan and Philippines as well as explore the possibility of cooperation in matters related to Customs. The meeting was held in a spirit of friendship, cooperation and desire to make rapid advances in the above mentioned sectors/areas.