This was stated by economic experts and businessmen in a survey conducted by NNI on the issue of World Trade Organisation (WTO).
Farah Ayub Tarin, Deputy Secretary, Economic Affairs Division, said that the government has assigned great importance to the WTO and has formed a 'WTO Ministerial Council' to deal with WTO-related issues effectively.
Moreover, she said, a special desk, with the approval of the Cabinet has been set up in Export Promotion Bureau for the same purpose.
She said: "It is believed that our industrial sector might be in a fix from January 2005. This is a misconception. With higher binding levels as compared to our applied tariffs and lower benchmark yet to be agreed upon at WTO, our industrial sector has no immediate threat. Our farmers should also support WTO, as they are liable to find better prospects in export of their goods, particularly in the textile sector.
The agricultural negotiations primarily address the issue of developed countries lowering their agricultural tariffs and eliminating subsidies so that Pakistan's agricultural exports can increase and domestic agriculture remains unharmed due to reduction in the import of cheap subsidised products."
She said that due to high tariff of 150 percent, the automobile sector of the country would be affected.
"However, it still has some time to prepare itself and face the challenges ahead with proper information and planning," she added.
"As far as 2005 is concerned, the main implications for Pakistan will be the complete phasing out of textile quota regime by January 1, 2005. This is something that Pakistan and other textile exporting countries had wanted, and negotiated for," she said.
Secretary, Custom, CBR, Habib Ahmed, said that the country's main exports on industrial side may be hard hit because of the prevalence of high tariff and non-tariff barriers.
"Pakistan, on the other hand, has been reducing on its tariffs by virtue of various tariff reforms and rationalisation processes," he said.
"In addition to reduction of tariffs we have also been engaged over a period of time in elimination of non-tariff barriers," he added.
He said: "The overall reduction of trade distorting domestic support and review of blue/green box criteria is in line with proposals of developing countries although the flexibility retained in blue box is against the expectations of developing countries."