Following the imposition of 200pc duty by India on all items exported from
Pakistan, the All Pakistan Textile Mills Association (APTMA) has suggested
Advisor to Prime Minister on Commerce Abdul Razaq Dawood to impose a
similar duty on all products originated in or exported from India.
In a statement issued on Saturday, APTMA asked for a 200pc duty on all
imports from India to Pakistan whether they be duty paid or imported
through a duty-free scheme.
“This step is important as after the Indian elections, India will reduce the
duties to normal again. The situation will not be a tangible one for Pakistan
if we don’t impose the reciprocal duty right now,” it added.
APTMA noted that the balance of trade between the two countries was highly
skewed in the favour of India, saying that the imposition of duty on Indian
imports would help reduce the trade deficit in the short run.
“The Pakistani industry is resilient and can source the required imports from
other sources,” the association stated. “This will also diversify our sources of
import and will be beneficial in developing world-class and quality textile
products.”
It is pertinent to mention that trade between Pakistan and India stood at
$1.39 billion in the fiscal year 2017-18, with exports standing at $419.8
million as compared to $1.81 billion worth of imports. Similarly, the balance
of trade in FY17 was $1.27 billion, as exports were recorded at $408.5 million
while imports stood at $1.68 billion.
According to the documents available with Pakistan Today, major exports
from Pakistan to India included edible fruits and nuts, peel of citrus fruit and
melons, helping the country earn $119.9 million in FY18. Meanwhile, the
export of salt, sulphur, stone, plastering materials, lime and cement in FY18
was recorded $96.9 million.
Moreover, the export of minerals fuels, mineral oil and bituminous
substances stood at $84.6 million in FY18.
Also, fertiliser export in FY18 was recorded at $34.5 million, while that of
raw hides, skin and leather helped the country earn $22.9 million.
Among major products that Pakistan imports from India, the import of
cotton from was recorded at $510.5 million in FY18, organic chemicals
$282.9 million, plastic and articles $107.4 million, machinery, mechanical
appliances, boilers, parts $75.5 million and man-made staple fibres $74.7
million.
Reportedly, soon after the killing of at least 40 Central Reserve Police Force
(CRPF) personnel in a suicide attack in Pulwama, the Indian government
had withdrawn “Most Favoured Nation” status accorded to Pakistan. The
Indian government had also imposed a 200pc import duty on all goods
originating in or exported from Pakistan.
On the other hand, Pakistan had strongly rejected any insinuation that
sought to link the attack to Pakistan without investigations. “We have always
condemned acts of violence anywhere in the world,” the Foreign Office
maintained.
Source: Pakistan Observer, Pakistan Monday, 01 April 2019