Apr 30 -
May 06, 2001
20% import tariffs for European Union under study
Pakistan is considering to offer 20 per cent import tariff
for goods from European Union, and in return will get 5 per cent tariff for
Pakistan's export to EU countries.
"We are seeking a market access in European Union for
which we will have to strike a bargain", said the Minister for Commerce and
Industries, Razak Dawood.
Speaking at a news conference on Thursday, the commerce
minister who has just returned from Brussels said that Pakistan's exports needed
to be greatly increased in EU in order to earn more foreign exchange.
He said although maximum import tariff will be 30 per cent
from the next financial year, special tariff will have to be given to EU to get
in return some better market access. "This is a budget issue which is still
to be finalized but tentatively we plan to give 20 per cent import tariff to EU",
He said he had met the Trade Commissioner of the European
Union Pascal Lamy and was offered 17.5 per cent import tariff for Pakistan as
was offered to Sri Lanka. He said Sri Lanka and Ukraine had accepted 17.5 per
cent import tariff for EU goods and that the same was now being sought from
"We have not decided any thing but I told the Trade
Commissioner that we need a better deal and we could consider 20 per cent
tariff", Razak Dawood said.
The commerce minister pointed out that Bangladesh, Egypt were
the privileged countries as there was no quota for them and that they could send
their products in EU countries without paying any duty.
He said although quota regime will have to go by the year
2005, its benefits were being showered to some selected countries by the EU.
Responding to a question, he said that it will take about 3
to 4 months to get various issues settled with the EU specially over the quota
and new tariff.
$100mn oil import financing arranged
Citibank and two other banks have arranged a $100 million
Islamic oil import financing facility for Pakistan State Oil (PSO).
The signing ceremony was held on Monday, which was also
witnessed by Minister for Finance Shaukat Aziz. According to details, Citibank
Pakistan along with Citi Islamic Investment Bank (as arranger), Saudi American
Bank and United Bank Limited (as co-arranger) help finalize an oil import
financing for the PSO.
This is the second facility, Citibank has arranged for PSO in
the Islamic market in the last six months. The signing of $45 million oil import
financing facility for PSO in December 2000, marked Pakistan's entry into the
international commercial debt market.
Export allowed to Central Asia without ST
The government has allowed export of cement, rice,
pharmaceuticals, glass sheets, G.I pipes and hardware items with duty drawback
and zero sales tax to Central Asian Republics (CARs) through the land route of
According to a ministry of finance notification No SRO 233
(I)/2001 dated April 19, 2001, the following conditions would govern the
The SRO said: "The federal government is pleased to
direct that para 8 of the following shall be substituted, namely, exports to
Afghanistan and Central Asian Republics, (I) Subject to sub-paras (2), (3) and
(5), export of all commodities produced or manufactured in Pakistan, excluding
those manufactured in manufacturing bonds, shall be allowed via land route to
Afghanistan against Pak-rupee on filling of regular shipping bills without form
"F" to any duty drawback and zero rating of sales tax.
EU must slash textile tariffs, says Dawood
The European Union must slash textile tariffs and quotas, as
part of a new drive to boost textiles trade with Pakistan, Commerce Minister
Abdul Razzak Dawood said Wednesday.
Following talks with EU Trade Commissioner Pascal Lamy,
Dawood said Pakistan wanted duty-free access to EU textiles markets on the lines
of a zero-tariff entry given to Bangladesh, Egypt and Turkey.
In return, Islamabad would be ready to meet EU demands for a
reduction in domestic textile and garment tariffs, he said.
"The EU's market access regime is holding us back,"
Dawood said. "We are currently at a competitive disadvantage as regards our
competitors." "The EU is asking us to chop duties. We have no problem
with that," Dawood said he had told EU officials.
Facilities at Pasni, Gwadar harbours
The Central Board of Revenue (CBR) has notified new
facilities at Pasni and Gwadar harbour for export shipment. The items exportable
through these two ports have been specified in notification No. 2(2) L&P/89
issued on Tuesday.
It says that on the Pasni harbour, for the general
merchandise like dates, onion, livestock etc and passengers baggage except fish
cargo and dried salted fish, the main jetty is available with cargo shed on the
East by jetty road, south by fish harbour wall and west by workshop.
On the Gwadar harbour, for general merchandise like dates,
onions, livestock etc and passengers baggage except fish cargo and dried salted
fish, the main jetty is available including cargo shed bonded on the east by
sea, north by submerged "groyne" south by headland wall and main gate.
Textile quota auction
The 2nd auction of growth textile quota 2001 for various
products will be held on May 10 at the offices of Export Promotion Bureau at
Karachi, Lahore, Faisalabad, Multan and Sialkot.
According to EPB sources Wednesday, the quota allocated
through auction will be non-transferable.
Sino-Pakistan trade relations
Foreign Minister, Abdul Sattar, has said that Pakistan will
step up efforts to develop a high-tech business consisting of software and
engineering enterprises to promote trade with China, said a message received
The very first shipment of 15,000 metric tons 90 RON unleaded
motor gasoline, produced by the PARCO, was loaded from Pakistan State Oil
Keamari Terminal storage tanks aboard the tanker MT Atai Star is off for a
Middle Eastern Port.