ISLAMABAD, July 23: The minister for commerce and industries, Abdul Razak Dawood on Tuesday said for the first time in Pakistan’s history the government had taken an action under anti-dumping laws to protect the local industry.

Addressing post-trade policy press conference, he said that Pakistan had imposed 23 per cent extra duty on import of tin-plates from South Africa as a provisional action and had called for an explanation from that country before imposing a final penalty.

Tin-plate constitutes around 36 per cent of total imports from South Africa.

Secretary commerce explained that Pakistan was required to provide an opportunity to the country that was dumping its products to give its view point otherwise it could be subjected to unfair but similar actions. If the case of dumping is proved then Pakistan can impose a definitive duty to protect domestic industry.

He explained that Pakistan could protect its industry through three laws. Anti-dumping law could be applied in case the industry was being affected through unjustified lower prices and dumping.

Counter-veiling laws could be applied if local industry was being affected because of subsidy given by a specific country while safeguards could be used if local industry was under threat even if there is no subsidy or dumping.

He curtly rebuffed questions on allowing import of reconditioned cars. “Reconditioned cars would not be allowed. The cabinet had discussed the issue and taken a decision to that effect,” the minister said.

Mr. Dawood said that he would be talking to the car manufacturers on July 26 in Karachi and discuss with them all issues including high car prices and premium prices and then report back to the President.

He said he would ask the car manufacturers that there was great deal of anxiety on these issues in the public and demand for import of reconditioned cars was increasing.

The minister somehow defended the car manufacturers saying he had studies which suggest car prices were not as high in the neighbouring countries but premium prices up to Rs200,000 per car in some cases was because of introduction of a new model, which could not meet the demand.

Razak said that demand for new cars increased because the State Bank of Pakistan allowed lease financing and said that car manufacturers had assured the government that demand and supply would balance by September.

To a question, the minister said that he would be meeting the governor, State Bank of Pakistan on July 27 for lease financing of TVs, ACs, washing machines and motor cycles, etc., but their (SBPs) concern was about how to recover the lease money.

To a question whether currency could be devalued to support exporters, the minister ruled out the possibility and said that a market mechanism was already in place. He hoped that rupee would remain stable around the current region while the US and European economies were starting to strengthen that would help achieve export target of $10.4 billion.

Dawood said there would be no change in the gold import policy except that the monopoly of some big companies has been done away with and every body could now import gold.

The minister expected that cotton yarn, cotton cloth, bedwear and readymade garments were the four export sectors that would enter the club of $1-billion exports while knitwear would be around $910 million.

He said that exports of rice, fruits, fisheries, yarn, cloth, towel and garments have increased significantly in terms of quantity but reduced in value terms.

Reuters add: Razak said Pakistan, seeking to restore its image as a reliable exporter, plans to build warehouses abroad to help its exporters maintain smooth supplies.

He said that after the September 11 events, an impression had been created that Pakistan was not a reliable source of supply.

“This scheme is aimed at ensuring that supplies would continue uninterrupted in any event,” he said.

Many importers cancelled their orders after September 11 attacks on New York and Washington, fearing supplies would be disrupted.

He said exports in fiscal 2001/02 had risen in volume but not in value.