Commerce Division has already started consultative process with the local industry afresh on the instructions of Prime Minister, Shahid Khaqan Abbasi who is expected to visit China next month.
A delegation of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) also met Commerce Minister, Pervaiz Malik and conveyed its serious concerns on the "activity" of Commerce Division.
The sources said, as a follow up of the discussions on 2nd Phase of CPFTA Ministry of Commerce has initiated consultative process with the relevant stakeholders in the Ministry of Commerce. During the first day of consultative meetings an unpleasant situation was observed when the representative from FBR started lobbying against the CPFTA. He informed the stake-holders that in the start of 2nd phase negotiations Chinese side agreed to address the concerns of Pakistani local industry but they did not honour their commitment despite a written statement.
He emphasized that the second phase will prove a disaster for the local industry if further tariffs were reduced. "Ministry of Commerce has not done their job properly. Chinese are not giving any extra benefits to Pakistan. Whatever they are offering is on reciprocal basis," the sources quoted him as saying.
Another stakeholder told Business Recorder that 57 items for which China will offer low duty, are under Non Tariff Barriers (NTBs), adding that if Pakistan is interpreting that safeguard measures agreed during 1st phase are not valid anymore then how can we justify the concessions given under phase-I. He said such concessions must be stopped.
One of the Commerce Ministry officials said that FBR has started media campaign after facing an embarrassing situation at a meeting chaired by the Prime Minister Shahid Khaqan Abbasi.
According to the official, FBR is accusing Commerce Division of not taking business community on board which is factually incorrect, adding that Commerce is heavily engaged in consulting with the local industry. FPCCI is concerned that FTA part-1 resulted in favour of China, where their exports to Pakistan were more than $ 15 billion against Pakistani exports to China of $1.5 billion last year.
However, this correspondent also met Minister for Commerce and Textile, Pervaiz Malik and sought his viewpoint on second phase of FTA with China; he said that FPCCI delegation met him on Wednesday and conveyed their reservations on the second phase, adding that local industry is not ready for second phase.
"Local industry and FBR have their serious reservations on the second phase of FTA," the Minister said adding that Commerce Division is consulting industry. He further stated that some other institutions have also asked Commerce Ministry to put the second phase on ice whereas some are in favour of second phase.
In reply to another question, the Minister said, when the consultative process is completed, the complete picture will be presented to the Prime Minister and his guidance will be sought prior to proceeding ahead.
Private sector is concerned about not being aware of the mechanism that would deal with under invoicing which is one of the key differences in bilateral trade statistics.
"Commerce Division is scrutinizing all issues. We will not impose our authority on the business community," the Minister maintained.