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Pakistan to seek zero-rated duty on exports to China

KARACHI: Federal Secretary Commerce Mohammad Younus Dagha said on Tuesday that Pakistan is going to seek zero-rated duty on exports to China for which second round on Free Trade Agreement (FTA) will be held next month.
He was speaking at the inaugural session of the 19th International Textile Asia Exhibition. Over 450 companies from around the world are showcasing their products at 800 stalls being held from March 27-29 at Karachi Expo Centre.
Around 1,200 foreign delegates representing countries such as China, Korea, France, Germany, Italy, Vietnam, Turkmen­istan are presenting their products including hi-tech textile machinery.
However, the biggest delegation has come from China and many have shown interest in relocating their textile units to Pakistan or are interested in entering into joint ventures. The Chinese are keen to bring their machinery for producing quality textile goods in return for local set-up, like factory premises.
The commerce secretary said that massive under invoicing on imports from China would be checked so that Pakistani exporters get equal benefit.
He added that Pakistan needs foreign investment and the government would encourage any sector which helps increase external trade and boost exports.
He admitted that issues like market access, high cost of doing business and exchange rate are retarding the exports growth. However, the government is working on these issues and has already devalued the rupee by up to 10 per cent.
Exports could not increase if they are costlier than imports and therefore balance has to be maintained in the exchange rate of currencies, he added.
Nevertheless, he said that the package given to exports under the PM package in the shape of Duty Drawback on Taxes (DDT) has helped growth of textile exports between January and February.
Similarly, he said the extension given by the European Union (EU) over GSP+ has helped increase exports of value-added textile goods by up to 90pc. As a result, total exports grew by 13pc during July-Feb period of the current fiscal.
Responding to a question, he said, that export target of $23.1bn for current fiscal will be achieved and the government is working on the five-year Strategic Trade Framework, under which themes like branding, gender equality and promotion of small and medium enterprises (SMEs) will be pursued.
Source: Dawn