EU urges Pakistan to enhance trade with ECO countries

[Salman]

EU urges Pakistan to enhance trade with ECO countries

ECO countries vital to enhance textile exports

KARACHI: The European Union (EU) has urged Pakistan to use its diplomatic and political channels to enhance its trade with the ECO countries.

The textile products exports to ECO countries were not significant and amounted to approximately $49.81 million in 2010.

Dr Shahzad Arshad Chairman Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association (PCFAMEA) said the value added textile industry was passing through a very difficult stage and exports were decreasing in terms of quantity and since inflation and fiscal deficit was increasing, the textile sector has to make sure to get new markets, to save industry and ECO countries could be of great help to Pakistan textile industry.

He said although signing of Transit Trade Agreement (TTA) with Afghanistan has given Pakistan access to few ECO countries, it was important the government should take steps to expedite the TTA with Central Asian Countries (CAS) by the finalising procedural protocols with the respective governments. Pakistan is strategically located at the crossroads of central Asia and northern Asia, two of the fastest growing economic poles in the world, and for centuries the region where Pakistan is now located has beneficiated from this particular situation.

He said Pakistan should sign TIR carnet convention as most of the ECO countries were using these regimes, which has proved instrumental in promotion of the intra regional trade.

Government of Iran should be requested to expedite the ratification of bilateral road transport agreement for enabling Pakistani exporters access to Turkey and EU markets through roads.

The frequency of the proposed container train should be increased to take advantage of this cheap and time saving mode of transport. He said government of Pakistan has been requested to make efforts to facilitate in arranging cargo flights to CARS, in addition to establishment of financial links and introduction of subsidised insurance schemes to promote trade in the region.

He requested government to take priority action on the hurdles being faced by the value added textile industry of Pakistan, which mainly includes price of gas to be reduced, gas and power supply to be ensured, price of electricity to be reduced, water supply to be ensured and law and order situation to be maintained.

He said foreign missions of Pakistan should be asked to take such steps to enhance Pakistan trade besides duty draw back and levies amount, pending with government should also be cleared. Discount rate should and spread should be reduced so that Pakistan export could be enhanced and eventually country could come out of the drastic situation.