Free trade with India demanded

The Sarhad Chamber of Commerce & Industry (SCCI) has suggested that free trade between Pakistan and India through Wagah border should be encouraged, rates of various taxes be cut and trade with Afghanistan be simplified to increase national exports.
These proposals were made by SCCI president Ghazanfar Bilour at 'Trade Policy 2006-07 Consultative Seminar' reflecting human development perspective in trade initiatives under the auspices of the Ministry of Commerce and United Nations Development Program (UNDP) in collaboration with SCCI here on Saturday.
He called for extension of DTRE scheme to all exportable items, cut in the ratio of general sales tax, establishment of marble, granite, gems & jewellery, furniture, matches and carpet villages in the province.
Stressing for consistency in the economic policies, he said that the policies should be maintained for periods of three to four years.
He also called for allowing exports from Risalpur Export Processing Zone to Afghanistan.
Zia-ul-Haq Sarhadi, chairman, Frontier Customs Agents Group and SCCI executive member, called for adopting a comprehensive policy for trade growth. He urged the government to take the current trade deficit into consideration before announcing increase in the exports target and asked the Export Promotion Bureau (EPB) to introduce Pakistan's products in Africa, South America and Central Asian States. He said that the exports target for next financial year should not be huge but achievable.
He said that Afghanistan-bound exports should be exempted from export development surcharge (EDS) for five years and withholding tax should be reduced to the level of 0.50 percent to promote exports to Afghanistan.
Director General, Export Promotion Bureau (EPB), Shujauddin Siddiqui, called for promotion of research and development in the sectors of marble & granite, furniture, pharmaceuticals, tobacco and matches industries. He said that marble and granite warehouse should be established in Nowshera and private sector should also be invited to participate in it.
Zahid Shinwari, a former vice president of SCCI, demanded cut in indirect taxes and levy of the taxes according to the financial conditions of the people. He said that the much trumpeted economic policies were benefiting a few individuals while poverty and unemployment were growing manifold. He called for removal of all non-tariff barriers in trade with India.
Sher Zaman Yousafzai, president, Mardan Chamber of Commerce & Industry, called for levy of 15 percent GST on gur to discourage export of the commodity to Afghanistan. He said that diversion of sugarcane to gur units was resulting in closure of sugar mills in the province.
Adnan Jalil demanded abolition of 0.01 percent cash transaction tax and cut in GST on utility bills to maximum level to minimise burden on the poor people.
Others who spoke included Aftab Iqbal, Mahmood Shah, Shahid Karamat, Mazhar-ul-Haq, and Shamim Qaiser, and Zahir Shah of EPB and Mohammad Tariq of Smeda.
Irtiqa Ahmad Zaidi, Economic Consultant, Ministry of Commerce, said that the ministry was holding trade policy seminars for first time in eight different cities of the country. He said that proposals and suggestions obtained in the seminars would be taken into consideration before announcing the trade policy for 2006-07. He said that the initiative had been taken under the UNDP program for capacity building of the stakeholders. He expressed hope that the trend would be further strengthened in future.