LAHORE, March 5: Federal Commerce Minister Humayun Akhtar Khan has said that Prime Minister Shauakt Aziz would raise the issue of lifting of tariff barriers with India under Safta during the next Saarc summit to be held in New Delhi in early April.

Talking to newsmen here on Monday he said that tariffs had to be cut between the Saarc countries under Safta signed in January, 2004. The first tariff cut came about in January 2006 and the second in January this year when India alleged that Pakistan was not complying with the agreement.

The issue was raised at the Saarc ministerial meeting in Kathmandu where Pakistan informed India that the ministerial council was not the proper forum for the issue. It was to be taken up bilaterally first and then referred to the committee of experts.

He said that India had talked about review of tariffs at the Kathmandu meeting but it was wrongly reported that it had refused to reduce the tariffs. He said that India had agreed to hold bilateral talks on the issue.

The minister said that Pakistan also wanted to start negotiations on a free trade agreement (FTA) with the European Union. A working group would now be constituted under a joint commission in spring, which would hold talks on all aspects of trade for signing the agreement.

He said that Pakistan was negotiating the establishment of Economic Opportunity Zones, which the US wanted to develop in the region including settled areas of the NWFP, Balochistan and tribal areas under a bilateral trade and investment treaty signed in 2003.

The goods produced in the zones would get duty free access to the US.

To a question about the FTA with the Gulf Cooperation Council he said it was expected to be signed in the near future.

About the growing trade gap he said that there were still five months left in the current financial year and the last months were always good for export performance. Moreover, the exports were not low as compared to last year.

He, however, said that imports could not be reduced because these accounted for 50 per cent of the government revenue.

Answering another question he said that India had got super basmati brand rice registered in US. Pakistan had disputed the registration under the Geographical Indication Law.He said that Pakistan had $1 billion exports per annum with Afghanistan which was running smoothly. There were, however, problems in signing of preferential trade agreement (PTA) with Iran due to lack of coordination between the ministries and border officials