Pakistan said on Tuesday it is seriously considering retaliatory action against Kenya, most probably by increasing duty on tea equivalent to duty levied by Kenya on Pakistani rice, highly reliable sources in the commerce ministry told Business Recorder. "We are seriously considering retaliatory action against Kenya which slapped enhanced duty on Pakistani rice, Irri-6, from 35 to 75 percent", said an official on the condition of anonymity.

The official said that 200 containers of Pakistani rice have been stuck up due to the increase in duty, which definitely force the government to initiate action against Kenya.

Pakistan's rice to Kenya stood at $285 million during 2003-04, while the import of tea from Kenya was $131.6 million. The share of consumption of Kenyan tea in Pakistan was 68 percent.

On February 11, Commerce Minister Humayun Akhtar Khan apprised the Senate that duty on Pakistani products would eliminate as bilateral talks with Nairobi were under way to rectify the situation, sources said, adding that Pakistan did not receive any positive response from the other side which forced us to consider retaliatory action against Kenya.

Humayun Akhtar also announced that Pakistan would retaliate on the issue and enhance duty on Kenyan tea if the issue is not resolved.

Copyright Business Recorder, 2005