Islamabad : Trader organisations have expressed their reservations over the proposed Free Trade Agreement-2 (FTA-2) with Beijing, saying the accord will destroy the local industry.
According to the under progress agreement, Pakistan is considering to give free access to 75 per cent Chinese products.
There is fear that Islamabad’s free trade accord with Beijing would increase inflation in the country.
The government is currently considering the suggestion to reduce tariff lines from 75 per cent to 60 per cent.
However, various trader organisations and chambers have expressed their concerns over the FTA-2 agreement.
They have the view that these sensitive Chinese products should not be given free excess to Pakistani markets.
The sources at the ministry of commerce said Islamabad and Beijing has been working on the free trade agreement for the past three years and latest development is a result of their past dialogues.
The sources also confirmed that the ministry of commerce has decided to review the suggestion over free access to 75 per cent Chinese products.
However, the sources added that the ministry has taken the initiative on the pressure of FBR, adding that the final decision would be taken after consultation with different stakeholders.
It is pertinent to mention here that Pakistan will give 3,900 tariff lines to China out of 7,200 tariff lines under the accord, adding consultation is under way in this connection.
Earlier, the suggestion was 4,500 tariff lines for Chinese product. Chinese companies would not have access to 3,300 tariff lines and the decision has been taken to protect the local industry.
Despite the ruling government has been working to finalize the accord with Beijing, however, there is fear that it would not be able to sign the agreement during its term. As there are few chances of singing of the accord during Prime Minister Shahid Khaqan Abbasi’s visit to China in April this year.
Minister for Commerce Muhammad Pervaiz Malik said consultation on FTA-2 is continues and the decision would be taken after completing consultation process. On a question, the minister said that the government was not in hurry to sign the agreement, adding all due procedure will be completed.
Subsequently, industrialists and experts said that the free trade agreement would be damaging for the local industry, adding that a visible reduction would occur in the production leather products.
Reduction in production of leather products would leave direct impact on the laborer community in the country.
Traders and industrialists said not a single item of local industry is being utilized on the CPEC project since Pakistan’s made products are being appreciated internationally.
They asked who will purchase our product when we will market our products in competition with Chinese products after paying duties.
The agreement will create gap between Chinese and Pakistani products which would be difficult to fill later on.
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