Prime Minister’s Trade and Investment Advisor Abdul Razak Dawood informed the Senate on Friday that an agreement has been signed with Iran to build border markets to facilitate traders in the region.
Speaking during Question Time in the House, the councilor said market construction would begin soon, which would bring progress and prosperity to the region.
He said there had been a 7.14% increase (in US dollars) in the total value of exports for the period July 2020 to March 2021 compared to the same period of fiscal year 2019-2020. .
Read more: 18 new markets approved along Afghanistan and Iran’s borders
Compared with March 2020, he said that the increase in exports for the month of March 2021 was 30.66% (in US dollars).
He said the government is making concerted efforts to promote exports by facilitating the industrial sector; to reduce costs, rights on raw materials have been rationalized.
The Adviser indicated that in addition to this, for the export oriented sectors, gas and LNG prices have been rationalized to Rs 852 / MMBtu and $ 6.5 / MMBtu respectively.
He said that to support the local industry, electricity was supplied at 9 cents / kWh to export-oriented sectors, including textiles and clothing, and that the government announced a 50% cut. electricity tariffs until June 2021 for SMEs.
Pakistan and Iran have established joint border markets at border crossings between countries, officials said. https://t.co/gb2BPzQf0U
– Asad Hashim (@AsadHashim) February 4, 2021
To facilitate financing, he said the mark-up to the Long Term Finance Facility (LTFF) and Export Finance Scheme (EFS) has been kept at 5% and 3% respectively.
The Tariff Policy Council (TPB) within the framework of the national tariff policy (NTP) has decided to rationalize tariffs, through the 2020 finance law, on nearly 2,000 tariff lines. The additional 2 percent tariff on 1,623 tariff lines, made up of basic raw materials used by industry, has been removed, he added.
He said the federal government provided incentives on commodity exports through the payment of duty drawbacks and drawbacks on local taxes and levies (DLTL).
In order to implement the “Make in Pakistan” Initiative, tariffs were reduced on 112 tariff lines, consisting of inputs / intermediate products, used by exporters in domestic production, he added.
Read more: Pakistan and Uzbekistan make trade trials via war-torn Afghanistan
In order to encourage the textile sector, Abdul Razak said that Textile The 2020-2025 policy is in the final stages of formulation, whereby electricity will be supplied at 9 cents / kWh, and gas and LNG at a preferential tariff for the industry.
The adviser said duties on 90 items had also been reduced from 11 percent to 3 percent and 0 percent on intermediate products that were not produced locally.
He said the government was conducting intensive trade diplomacy and trying to gain access to new markets for local traders and industry through free trade agreements (FTAs) and preferential trade agreements. (PTA).
Read more: Pakistan and Iran agree to facilitate legal trade in border region
Abdul Razak said the government was already working on PTAs with Afghanistan and the Central Asian Republics (CAR). The formulation of the Strategic Trade Policy Framework (STPF) 2020-25 is in the final stages, which will cover policy interventions aimed at creating competitiveness, tariff reform, investment in export-oriented production, integration into global value chains, better access to markets, strengthening, etc.