ISLAMABAD, April 11: Islamabad has sought preferential tariff from Beijing on its exportable goods to the latter aimed at reducing the trade deficit with China.
Well-placed sources told Dawn on Friday that the issue was discussed with the Chinese government following the allowance of preferential tariff on Indian goods by the former.
China under the Bangkok agreement has given preferential tariff to South Korea, Louis, India, Bangladesh and Sri Lanka due to which the products of these countries are more competitive in the Chinese markets.
The sources said China did not want to give similar tariff preferences to Pakistan on the pretext that Islamabad was not a member of any free trade agreement (FTA); regional trade agreement (RTA) or having any agreement with other country.
According to the sources, with the coming into effect of the FTA with Sri Lanka there was a possibility for Pakistan to obtain the same facility from China on some of its exportable items.
“The government will soon again start talks with the Chinese government on the issue following the ratification of FTA with Sri Lanka,” said the sources. The said it was the responsibility of the government to prepare an action plan shortly for increasing the volume of Pakistani products to the Chinese markets.
According to the sources, the action plan should focus on to work out a comprehensive survey and study of China’s market in goods and services category wise and Pakistan’s competitors.
It should also identify procedural hurdles in the way of Pakistan’s exports to China in close consultation with the private sector and the resolution of visa issue for businessmen by way of visa abolition agreement between the two countries, if possible.
The action plan should also focus on the incentives for the Chinese investors in many sectors, particularly in textile, loom and power.
