Taking strong notice of not taking the Ministry of Textile into confidence over the grant of Most Favored Nation (MFN) status to India by Ministry of Commerce, Senate Standing Committee on Textile decided to write a letter to Prime Minister Syed Yousaf Raza Gillani, complaining the sole flight of the ministry. Senate Standing Committee on Textile was held under the chairmanship of Senator Gul Mohammad Lot. He termed the situation very serious and said that this lack of coordination between the two ministries would ultimately harm the interest of the country.
Lot Chairman of the Committee, Senator Gul Mohammad, while terming the situation very serious said even both ministries are not on the same page which would ultimately harm the interest of the country, especially on granting India MFN status. Chairman, Textile Committee has asked both ministries to submit report over the matter in next fifteen days to find out the impediments causing lack of coordination between the two ministries. Federal Minister for Textile, Makhdoom Shahabuddin, protested against Ministry of Commerce for not taking Ministry of Textile into confidence regarding the grant of Most Favorite Nation (MFN) status to India.
He said the Ministry of Commerce does not recognise textile as a separate ministry and authorities in commerce division have also never considered consult the Ministry regarding any matter.
Chairman of the committee asked both the ministries to submit report over the matter in fifteen days to find out the impediments causing lack of coordination between the ministries.
Secretary Textile, Shahid Rashid, informed committee that the commerce officials did not consult Textile Ministry while saying that South Asian Free Trade Agreement (SAFTA) has more impact than giving MFN status to India.
It is important to mention here that the items mentioned in the negative list of both countries would also be diluted after 2012, according to the joint declaration between India and Pakistan. Pakistan and India was signatory of regional South Asia Free Trade Agreement (SAFTA), according to which more than 80 per cent of trade can take place on tariff rates below or equal to 5 per cent only,
The only barrier from Pakistani side is Appendix-G of Trade Policy Order through which Pakistan has restricted imports from India via land route and around 1946 tariff lines.
The present trade negotiations are intended to eliminate Appendix-G which has restricted imports from India under MFN and SAFTA, he said. This will not only bring a normal trade relationship, but in fact implementation of free trade agreement thus, allowing imports from India without any custom duty for majority of items, he added.
Committee was told Pakistan has been given General Most Favored nation (GMFN) status since 1996. Despite of that, Pakistan has not been able to export goods of more than $272 million to India whereas; India’s exports to Pakistan are estimated to be around $1.5 billion. In case of textile, Secretary Textile said Pakistan only exported $45 million worth of textile products to India whereas, India exported $566 million worth of textile products to Pakistan in a calendar year.
Committee was also briefed regarding TDAP’s participation in international textile exhibitions. The Committee members were of the view that Trade and Development Authority of Pakistan (TDAP) should try to find new markets for exports instead of just focusing on Europe. Committee emphasises on expanding the trade volume instead of showing enhanced figures of exports. Chairman committee said commodity prices are coming down and ministry should try to find new markets, especially in Africa and South America.
The committee was told that even after 80 per cent cotton crop was destroyed due to the rains and flood in Sindh; the country will produce record cotton production this year.
It is also important to mention here that despite invitation by the parliamentary committee, Federal Minister for Commerce, Amin Fahim and Secretary Commerce, Zafar Mehmood did not appear before the committee.
