Karachi, July 09, 2019 (PPI-OT): Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) hailed the upcoming visit of Prime Minister Imran Khan to USA scheduled from July 20, 2019 and hoped that it will open new vistas of trade and economic relations between both nations. He stated that Pakistan was a front allay of USA in war against terrorism which created losses to our economy of US$ 130 billion (approx.) since 2003 in terms of declining in exports, compensation to the affectees including the internally displaced people and others, damage of physical infrastructure, declining of foreign investment etc.
In a statement, President FPCCI appreciated the visit of Prime Minister Imran Khan and requested him to include the businessmen or representatives of private sector in their entourage to USA. He stated that the talk with USA counterparts should be on equitable basis for the sovereignty and security of Pakistan. While quoting the statistics of Pak-USA trade, he indicated that USA is the largest trading partner of Pakistan with trade volume US$ 6.7 billion.
Pakistan’s major exports to United States are sports goods, surgical goods, leather and finished leather products, textile, cotton yarn, garments, carpets, and rice. Pakistan’s main imports from United States are electrical machinery, equipment, medicines, dry fruits, perfumes, coffee and other food items. Although the trade is in favour of Pakistan but the share of Pakistan in USA trade is very minuscule.
Engr. Daroo Khan Achakzi further stated that Pakistan needs better market access to USA instead of aid; because trade is an engine of economic growth and helps in alleviating poverty; which may further lead to economic development and prosperity. USA has extended General GSP facility to Pakistan for another three years which requires compliance of 15 eligibility criteria; provides an opportunity to the exporters of jewellery, carpets and agricultural products including mangoes, chemicals, minerals, and marble sectors to get benefits from this scheme and export their product to USA.
He added that textile that has 85% share in Pakistan’s exports to USA faces high tariff rate (in between 13 to 22 percent) in USA. It is true that Pakistan’s textile exports to USA has increased after the elimination on quota, but this elimination is not giving significant benefit to Pakistan, he stated. At present, Pakistan’s textile faces tough competition with Vietnam, Indonesia, and Bangladesh due to duty free access of textile. He also underscored the need of negotiation on bilateral investment treaty for promotion of investment which is under consideration since 2004. Moreover, visa is another impediment which Pakistani businessmen are facing in travelling to USA in order to explore the US market.
For more information, contact:
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan