ISLAMABAD, Jan 18: Pakistan will seek reduction in tariff rates on its main exportable items from Bangladesh to enhance trade relations between the two countries, an informed source told Dawn.

The average import duty on importable items in Bangladesh is around 37.5 per cent, whereas in Pakistan it is 30 per cent.

Pakistan’s major regional trade partner in 2000-01 was India, followed by Bangladesh and Sri Lanka. In 1999-2000, Sri Lank was Pakistan’s second trade partner ahead of India.

The tariff issue is to be discussed during the forthcoming visit of Commerce Minister, Abdul Razak Dawood to Dhaka, scheduled for January 27-30. The minister will also be accompanied by a business delegation.

During his stay the minister will call on prime minister of Bangladesh, ministers for foreign affairs, commerce, textile, law and parliamentary affairs and industries. The minister will also visit Dhaka International Trade Fair.

The source said that Dawood will discuss with the BD officials reduction in import duties on trade items by the two countries. However, it has not been decided to what extent the duties could be slashed, the source added.

If an agreement is reached between the two countries, the source said, Pakistan would be a big supplier of textiles to Bangladesh as 75 per cent of total exports of BD constitutes readymade garments.

According to trade figures made available to Dawn Bangladesh average share in Pakistan’s total export and import stood at 1.4 per cent and 0.3 per cent respectively recorded during the year 2000-01. While the trade balance between the two countries stood at $100.214 million in 2000-01.

Further break-up showed that during the July-October period of 2001-02 Pakistan’s export to Bangladesh stood at $28.525 million, while Bangladesh’s export to Pakistan stood at $5.743 million during the same period. The trade balance between the two countries during the July-October period stood at $22.783 million.

Similarly, Pakistan’s total exports to BD during 2000-01 were $133.422 million, while Bangladesh total exports to Pakistan were $33.208 $ million during the same period.

Pakistan’s total exports to BD during the year 2000-01, mainly included $26 million vegetable products mainly cereal, $34 million textile products mainly cotton, $3 million food stuff and mineral products worth $5 million.