Karachi, March 10, 2014 (PPI-OT): The President FPCCI Zakaria Usman, has appreciated the government move to grant Non Discriminative Market Access (NDMA) status to India, as India has agreed to remove all non tariff barriers along with reduction in tariff on 300 Pakistani items approximately.
He said that the decision will be a milestone for increasing volume of bilateral trade at a desirable level that nearly US $ 10 billion in next few years. He also urged the Prime Minister Nawaz Sharif and Commerce Minister Engr. Khurram Dastagir to take personal interest in finalizing the decision at the earliest so that the optimum potential of bilateral trade available between both the countries may be materialized.
The President FPCCI said that India had granted MFN status to Pakistan in 1996 after becoming member of WTO, thereafter, the Indian exports started gradually increase in Pakistan while the Pakistan’s exports to India is still remain low. After NDMA status to India and availing the concessions and incentives of Indian government the volume of bilateral trade between both the countries will increase.
He further stated that NDMA status to India will help to improve competitive opportunities for Pakistani and Indian manufacturers in each other’s market, which is being enjoyed by all other trading partners of both the countries.
Trade normalization between Pakistan and India will impact the South Asia Free Trade Agreement (SAFTA) to be implemented with zero tariff rates in 2016. He said that the business community of both countries is very much eager to establish strong and significant investment relations. Normalization of trade and investment will not only create employment opportunities but it will also help in alleviation of poverty and boost the prosperity and peace in both countries.
He said that in the era of globalization, both countries should gain from the experience of one another by diverting considerable economic resources from non desirable to desirable areas. He further added that India is the biggest market of the world and Pakistani manufacturers and exporters should make the maximum utilization of this market by aggressive marketing of their quality products.
Zakaria Usman was referring to the news item appeared in the daily newspapers, and expressed his satisfaction on certain concessions and incentives agreed by the Indian Government to offer Pakistani export oriented industries. At present, the Pakistani products specially textile are subject to custom duty in the range from 60 to 120 percent. However, after getting the NDMA status the India has consented to reduce the tariff to 5%.
Keeping in view of the potential of trade between both the countries the FPCCI chief urged the Pakistani government to develop necessary infrastructure at Wagha border to facilitate both the Indian and Pakistani exporters. He was optimistic that under NDMA status about 8000 products will be traded across the border.
For more information, contact:
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Tel: 0092-21-35873691, 93-94
Fax: +9221 3587 4332
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