KARACHI, Sept 27: Federal Commerce Minister Humayun Akhtar Khan said on Thursday that India’s decision to open up disputed territory of Siachen for tourism would not impact its trade relations with Pakistan.

“But India should restore status quo as a confidence-building measure to normalise relations with Pakistan,” the minister said while responding to a question from a journalist at the committee room of the Trade Development Authority of Pakistan (TDAP).

The minister had come to the TDAP office to preside over the second meeting of 28-member board.

The Pakistan government has in all likelihood given up efforts with the European Union (EU) to remove 5.8 per cent anti-dumping duty on import of bedlinen and has instead apparently preferred waiting for one more year till 2008 when it expires on completion of a five-year period.

Mr Khan did not say all this directly but indicated that the possibility of a further rise in rate of this anti-dumping duty cannot be ruled out if “we insist on a review.”

Therefore, after consulting all stakeholders in the business it was decided to wait for expiry of anti-dumping duty next year.

In the year 2003, the EU imposed a 13 per cent anti-dumping duty on Pakistan’s bedlinen, which was revised to 5.8 per cent after a few years when it was reviewed.

It has greatly impacted Pakistan’s textile exports as 5.8 per cent anti-dumping duty with about 10 per cent other levies make bedlinen uncompetitive in Europe’s market.

Nonetheless, he informed that a sub-committee of Pakistan-EU Commission is meeting next month in Brussels to review impact of EU trade policies in South Asia.

In South Asia, four countries — Nepal, Maldives, Bhutan and Bangladesh -- are in the category of least-developed countries (LDCs) and have, therefore, access to EU market at zero rate of duty.

Sri Lanka enjoys benefit of generalised scheme of preferences (GSP) of EU. Of the two remaining countries Pakistan and India, the import of home textiles from Pakistan is subject to a levy of 5.8 per cent anti-dumping duty.

The minister said Pakistan and EU would carry out a joint exercise to assess negative impact, if any, of the trade policies of EU on Pakistan after which steps would be taken to rectify the situation.

“Our export is showing growth, but it is sluggish,’’ Humayun Akhtar conceded in response to an observation of a journalist, who informed him that export growth in the first two months is not satisfactory.

“But trade imbalance is shrinking as compared to last year,’’ he remarked when asked to give his assessment of the future trend of international trade.

“Textiles industry is under pressure, domestically and internationally,’’ the minister said when reminded that leaders of textile industry were complaining of tremendous pressures within the country and in the export market.

He agreed that the pressures being faced by textile industry in Pakistan was being shared by all other sectors of industry also. He was reminded of his observation in trade policy speech in which he attributed sluggish growth in 2006-07 export to non- availability of enough exportable surplus and that government’s taxation policy supports speculative business rather than real sectors growth.

“Some measures are being taken to promote industry,’’ he replied.

On recent wheat imbroglio, the minister conceded that it was really embarrassing for the government to make claims of a bumper crop and decide for export and within weeks suspend it in panic after finding that there could be a shortfall.

He said the crop size of wheat was measured in the way it was done for last 60 years.

Pakistani wheat is cheapest in the world, he said, adding smuggling became an attractive proposition.

Similarly he said wheat in Pakistan was a cheapest grain and was used as feedstock for animals, which was also a factor for shortage.

TDAP chairman Tariq Ikram outlined his strategy to push up exports of non-traditional goods and explore new markets’’.

This strategy fetched $175 million in last fiscal year.

He denied any favouritism shown in sending people to foreign exhibitions and in trade delegations.