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Published 05 Dec, 2004 12:00am

Riyadh may be asked to remove trade barriers

ISLAMABAD, Dec 4: Pakistan is likely to ask the Kingdom of Saudi Arabia for removal of non-tariff trade barriers. Well-placed sources told Dawn on Saturday that Islamabad would request Riyadh for streamlining the requirements of acquiring Saudi certification standards issued by the Saudi Arabian Standards Organization (SASO).

Currently, more than 800 importable items in Saudi Arabia mostly Pakistani goods were subject to fulfilment of these standards, which include engineering goods. Each consignment was required to be accompanied by the SASO conformity certification.

For introducing Pakistani pharmaceutical products in the kingdom, the sources said that Pakistan would ask for relaxing registration of pharmaceutical products for imports in Saudi Arabia, which was highly complicated and difficult.

Currently, Saudi Arabia has given special treatment to Arab League countries and in practice those stringent registration measures are not applied to them. "This is a conscious policy decision of the Saudi government for increased trade interaction with the Arab League countries", the sources remarked.

Pakistan would also request the kingdom for reduction of duty to 5 per cent ad valorem on export of tents, canvas, towels, prayer rugs etc., to Saudi Arabia.

The general rate of import duty in Saudi Arabia is 5 per cent ad valorem. Items like tents and canvas, towels, prayer rugs etc., are chargeable to 20 per cent ad valorem and bed sheets 12 per cent.

It was also proposed to jointly organize Pak-Saudi trade fairs in both the countries, where wide range of all national products should be exhibited. These exhibitions should be organized in Jeddah, Riyadh and Dammam in Saudi Arabia, while in Pakistan these should be held in Karachi, Lahore and Peshawar.

To facilitate promotion of bilateral trade through increased interaction, which might include exchange of businessmen delegations, liberalization of business visa regimes and participation in trade fairs.

It was observed that for the last many years no official Saudi trade delegation has visited Pakistan. This was over due. Saudi side might be asked to organize these visits on regular basis.

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