LAHORE: The Pakistan Industrial and Traders Associations Front (PIAF) has opposed the government plan to offer zero duty on almost 6,000 tariff lines in the second phase of Pak-China Free Trade Agreement (FTA), saying it will hit all major industrial sectors in Pakistan.
In a meeting of PIAF Executive Committee, PIAF Chairman Irfan Iqbal Sheikh rejected the revised FTA with China, arguing that Pakistan does not possess exportable surplus so exports cannot get a boost in a big way even if it gets reciprocal incentives from China.
He suggested that Pakistan should made a special request to Beijing to take remedial measures in the wake of eroded exports by granting concession on products so revised FTA could give a boost to exports, as trade deficit had increased from $3 billion to $12.65 billion over the last decade.
China’s exports to Pakistan have increased from $4 billion in 2006-07 to $14.5 billion in 2016-17. Pakistan’s exports increased from $0.5 billion to $1.47 billion during the same period.
He said it was unfortunate that Pakistan and China had agreed for granting tariff reduction on 75 percent tariff line under the proposed revision in the FTA.
Irfan Iqbal said that Pakistan was going to increase the number of items with zero duty from 2,600 tariff lines to 6,000 tariff lines, which would have a much larger negative impact on the country’s industries. “We appreciate the Federal Board of Revenue (FBR) for sternly opposing the revised FTA, as it would negatively affect the country’s industries.”
PIAF patron-in-chief Mian Anjum Nisar was of the view that the government should devise a strategy in the light of impact on domestic industry and China should have been asked to reduce tariff on 75% tariff lines, reduce sensitive list to 10% while retaining and deepening preferences.
