Pakistan and Indonesia had signed PTA in 2012-13 which covers 232 tariff lines in case of Pakistan and 300 plus tariff lines for Indonesia. In reply to a question, Dawood stated that after signing the PTA, Indonesia''s exports doubled to Pakistan in five years to $ 2.3 billion from $ 1.2 billion but Pakistan''s export declined by 40 percent to $ 141 million from $ 236 million which was a cause of concern for Pakistan.
In 2017, Pakistan took up the issue with Indonesian authorities, saying that trade imbalance is not acceptable. Pakistan argued that it would not hesitate to scrap the PTA as it is entirely in favour of Indonesia. He said, Commerce Secretary Younus Dagha raised the issue with Indonesia which resulted in more concessions for which he deserves credit. Pakistan''s Commercial Councilor to Indonesia should also been given credit for playing a very important role in pursuing the case with Indonesian authorities , in addition to Joint Secretary, Shafiq Shehzad.
He said, zero duty concessions have also been notified after approval from Parliament and President of Indonesia. Razak Dawood further stated that Pakistan''s export of 20 tariff lines constitute around $ 48 million which is expected to increase to $ 150 million in a year i.e. over 212 per cent increase. He further stated that Pakistan''s global export in 20 tariff lines is about $ 5.5 billion whereas Indonesia''s import of these tariff lines is $ 900 million. Pakistan exported wheat and rice of 0.2 million tons each last year.
Answering another question about recent decision to increase in RD by 200 per cent and withdrawal of MNF status by India, Abdul Razak Dawood said that Pakistan is still thinking about future line of action. "Obviously we will not do those things which hurt our economy. We will not become emotional. If we do something, it will be after due thinking like a business," he added.
In reply to another question, Prime Minister''s Advisor stated that China is being very helpful with regard to market access. "They have agreed to import Pakistan''s sugar, rice and cotton yarn, export of which I think will start by the end of next month," he continued. According to Joint Secretary, Shafiq Shehzad China has shortlisted companies which will be responsible for starting the physical movement of sugar, rice and cotton yarn. Trading Corporation of Pakistan (TCP) will ensure quality of goods to be exported to China.
He added that balance of payment support by China of about $ 2.5 billion is almost done.
The list of tariff lines on which duty has been reduced to zero are as follows: Mangoes, Broken rice-used for animal feed, Broken rice-others, Undenatured ethyl alcohol of alcoholic strength by vol of 80% or more (ltr), Denatured ethyl alcohol and other spirits of any strength, tobacco, not stemmed /stripped-virginia type, Tobacco, partly wholly stemmed/ stripped-Virginia type, Articles of apparel and clothing accessories of leather or of composition leather, single yarn; of uncombed combed fibres 192.31?measuring?232, single yarn; of combed fibres 192.31?measuring?232, woven fabric of cotton containing more than 85% by weight of cotton-denim of, woven fabric of cotton containing than 85% by weight cotton-Denim, T-shirts Wome; singlets & oth vests; knitted/, T-shirts men/boys; singlets & others vests knitted/croc, T-shirt; singlet & cloth vest; knitted/crochet; of other, jerseys; pullovers; cardigans; waistcoat of cotton, Men /boys trousers of cotton, Women''s or girls'' trousers, bib and brace overalls, breeches and shorts of cotton (excluding...., Bed linen; printed of cotton and toilet; kitchen linen; of terry toweling /similar t-shirts.
