‘FTAs costing Pakistan dearly’

[nadeemkhan110]

ISLAMABAD: The Senate Standing Committee on Commerce on Wednesday noted that free trade agreements (FTAs) have adversely affected Pakistan’s trade with partner countries, with the Federal Board of Revenue estimating a revenue loss of around Rs40 billion per annum due to preferential trade agreements.

Over the years, trade diplomacy by the Ministry of Commerce has opened up Pakistan’s market to international goods but deprived the country from due taxes, the committee, led by its chairman Senator Shibli Faraz, observed.

Senator Nauman Wazir, who was specially invited by the committee to give a briefing on FTAs’ impact, informed that the trade deficit ratio of exports and imports with China has increased from $4bn to $12bn.

He questioned whether the commerce ministry was coming up with any plan to get feedback from experts and stakeholders on the terms of these agreements.

Secretary Commerce Azmat Ali Ranjha informed the committee that import volume has gone up irrespective of FTAs. He said the ministry now engaged in structured discussion in the process to help avoid trade deficit and to safeguard local manufacturers and farmers.

Senator Usman Kakar from Balochistan said the Chinese FTA has led to closures of several industries in the country. “Our products, especially agriculture products, are cleared on duties and taxes at ports in China,” Senator Kakar said.

Exim Bank: On the issue of much-awaited Exim Bank, the committee was informed that the board of directors for the bank is now in place and a consultancy firm will soon be hired to prepare a manual and business plan.

The State Bank of Pakistan will licence the bank after the consultancy firm finishes all work required for the bank’s functioning which will be before June next year. The committee observed that the importance of Exim Bank was not understood as it should be. The committee asked for representation of all provinces in the board of directors of this bank.

Imported milk: The matters of import of huge quantity of possibly substandard powdered milk and the restriction on imports of PVC scrap on the pretext of being hazardous were also discussed in the meeting.

The commerce secretary informed that powdered milk imported in country is subjected to standard control and is checked by the Pakistan Standard Quality Control Authority (PSQCA) under the Ministry of Science and Technology.

Regarding restriction on PVC scrap, the committee asked the ministry to have a mechanism in the policy which is suitable for small manufacturers.

The committee said the TDAP Act observed that it is too widespread and its work ambit is to be constrained.

Secretary commerce said the act was fine and the Trade Development Authority of Pakistan is working towards rationalising major objectives.

Published in Dawn, December 8th, 2016

 

[That Guy]

FTAs have historically been bad for Pakistan, and have harmed Pakistani industries, as well as ended up with deficits for Pakistani trade.

New FTAs shouldn't be pursued, until previous ones are amended.

 

[Qutb-ud-din Aybak]

instead of blaming FTA make your self stronger by increasing exports.

 

[Bouncer]

FTAs have historically been bad for Pakistan, and have harmed Pakistani industries, as well as ended up with deficits for Pakistani trade.

New FTAs shouldn't be pursued, until previous ones are amended.

Problem is that you can't keep signing FTAs and ignore your industry. With this accountant at the helm, no one is working on exporters' concerns. We are getting crushed by Chinese imports while our core industries suffer from complex tax laws, power shortages and red tapes everywhere.

 

[Chinese-Dragon]

FTAs have historically been bad for Pakistan, and have harmed Pakistani industries, as well as ended up with deficits for Pakistani trade.

New FTAs shouldn't be pursued, until previous ones are amended.

The true was same for us before.

Protectionism is useful for buying time. But buying time for what? Pakistan's goal should be to become one of the most competitive manufacturers in the world, as a developing country with a large educated population, and soon to be strong infrastructure, Pakistan will be well positioned to win the competitiveness game in the future.

As for right now, I agree Pakistan should probably avoid signing too many FTA's, and give their domestic industries a chance to catch up first.

 

[Stag112]

that the trade deficit ratio of exports and imports with China has increased from $4bn to $12bn.

This is a small price to pay for all the favors china is doing Pakistan.

 

[Pakistanisage]

The true was same for us before.

Protectionism is useful for buying time. But buying time for what? Pakistan's goal should be to become one of the most competitive manufacturers in the world, as a developing country with a large educated population, and soon to be strong infrastructure, Pakistan will be well positioned to win the competitiveness game in the future.

As for right now, I agree Pakistan should probably avoid signing too many FTA's, and give their domestic industries a chance to catch up first.

Well said. I agree 100%.

 

[volatile]

Our Industrialist are the main problem coupled with bureaucracy we lack professionals ,After working over a decade in manufacturing organizations in Pakistan i can safely say

Bad Quality
Non ethical work habits
No R&D
Politics in corporates at senior positions
Skill set not available
Non awareness of Intl Manufacturing standards
Production driven mindsets (Supply demand in favour) but after these FTA peoples are getting cheaper and better quality products


FTA is in the betterment of Pakistan but with current capacity as well as capability issues its a curse

 

[Foggy_Bottom]

These are not FTA's you have signed with China.
These are one sided high interest loans, coupled with zero protection for your industries ALA CHINESE DUMPING GROUNDS, plus tax free (or pakistan taxpayer funded) subsidies to Chinese companies. This is a classic case when you become beholden to a single entity. The Chinese know they are your sole protector and hope, and have been milking you for sometime. Maybe your new pal Russia will fund and give you aid from their recession hit economy.

 

[Jugger]

The true was same for us before.

Protectionism is useful for buying time. But buying time for what? Pakistan's goal should be to become one of the most competitive manufacturers in the world, as a developing country with a large educated population, and soon to be strong infrastructure, Pakistan will be well positioned to win the competitiveness game in the future.

As for right now, I agree Pakistan should probably avoid signing too many FTA's, and give their domestic industries a chance to catch up first.

Protectionism will lead to less growth, lethargy and increased corruption. Pakistani companies must compete with the best in the world, competition is the only way to have better products and services.
If any company is unable to provide better products or services then let them fail.
They will have to either change or fold up.

 

[salarsikander]

These are not FTA's you have signed with China.
These are one sided high interest loans, coupled with zero protection for your industries ALA CHINESE DUMPING GROUNDS, plus tax free (or pakistan taxpayer funded) subsidies to Chinese companies. This is a classic case when you become beholden to a single entity. The Chinese know they are your sole protector and hope, and have been milking you for sometime. Maybe your new pal Russia will fund and give you aid from their recession hit economy.

Oh the irony.
An Indian who is shameful to even show his real identity comes to preach us.

Lol. It was Russia who has been milking you lot for quite a time by dragging the as carrier for years and then with su-30 after sales support. You lot were literally begging them yo help you

Protectionism will lead to less growth, lethargy and increased corruption. Pakistani companies must compete with the best in the world, competition is the only way to have better products and services.
If any company is unable to provide better products or services then let them fail.
They will have to either change or fold up.

Spot on. Either you shape in or ship out

 

[Max]

This is a small price to pay for all the favors china is doing Pakistan.

look at your own trade deficit with China then comment. Atleast we are getting favours..

 

[holysmoker]

China se dosti k kuch cons..

 

[maximuswarrior]

The true was same for us before.

Protectionism is useful for buying time. But buying time for what? Pakistan's goal should be to become one of the most competitive manufacturers in the world, as a developing country with a large educated population, and soon to be strong infrastructure, Pakistan will be well positioned to win the competitiveness game in the future.

As for right now, I agree Pakistan should probably avoid signing too many FTA's, and give their domestic industries a chance to catch up first.

Well put, bro. We know what we are getting from China and no amount of FTA's can substitute that.

 

[Abba_Dabba_Jabba]

Three step solution for Pakistan:

1). Amend the current FTA, urgently. Because BoP crisis might just be at the corner.
2). Create good environment for business e.g. Tax reforms, Land reforms, curb on terrorism, etc.
3). Bring more foreign companies through FDI and give a slogan "Make in Pakistan". Even ask overseas Pakistani to invest in their homeland including Sharif's son.

China se dosti k kuch cons..

As far as China is exporting capital goods, it should not be a problem for Pakistan, it means they are supporting your GDP. But this should not continue for long, otherwise "Lene chale the $ 46 billion aur pata chala her saal $ 12 billion dena pad raha hai". I hope you understand Urdu.