CPEC: No trade concessions to China: Dastgir

MUSHTAQ GHUMMAN

ISLAMABAD: Commerce Minister Engineer Khurram Dastgir Khan said on Wednesday that Pakistan will not extend trade concessions to China under the game changer China Pakistan Economic Corridor (CPEC).

There is no change in trade volume with China even after the CPEC project. China will not be given any special consideration in trade under the CPEC, he said, while briefing Senate Standing Committee on Commerce. The committee met with Syed Shibli Fraz in the chair to discuss the following agenda: (i) missing link between the STPF 2015-16 and CPEC; (ii) how to arrest declining trend of exports; and (iii) impact of Free Trade Agreements (FTAs) on local industry.

On a question of Syed Shibli Fraz regarding benefits of CPEC project, the Commerce Minister said Industrial Zones are the fourth pillar of CPEC. Pakistani industrialists will be given incentives in Economic Zones at par with Chinese industrialists. He said $ 36 billion are being spent on energy projects under the CPEC.

Chairman Standing Committee, who belongs to KPK, said that CPEC projects are being kept top secret due to which concerns are increasing. He also criticised Minister for Planning, Development and Reforms, Ahsan Iqbal, for not unveiling details of the project.

Senator Ilyas Bilour, who also hails from KPK, said that China would reap more benefits from CPEC relative to Pakistan. Gwadar port would help China reduce the distance for export and imports of goods from China to markets in the Middle East and Africa.

Pakistan will only open tea stalls and restaurants on the CPEC route, he added.

Commerce Minister stated that the government is making all-out efforts to increase exports and also paying attention to SMEs.

He further stated that the government has extended incentives to facilitate trade including technology upgradation, capacity building, duty drawback due to which confidence of exporters has increased. Government has also extended 50 per cent reduction in duty on agro-machinery.

The standing committee expressed its concern on continuous decline in exports. Chairman of the committee maintained that lack of vision is the major reason for the decline in exports. Senator Salim Mandviwalla said that Pakistan is becoming an importing country.

The committee was also informed that exports stood at $ 20.8 billion in 2015-16 against $ 24.5 billion in 2012-13 and $ 24.8 billion in 2009-10.

Commerce Ministry officials informed the committee that Pakistan exported crude oil of $ 20 million to Thailand in 2014. Senator Salim Mandviwalla expressed surprise at this comment and pointed out that that Pakistan is an oil importing country and questioned how and when did Pakistan become an oil exporting country.

Commerce Ministry officials informed the committee that presently negotiations process on FTA-II are stalled. China had given assurance that Pakistans concerns would be eased in the second phase of FTA but so far no progress is witnessed in this regard.

We dont want to enter into FTA-II until concerns of the first phase are resolved, said Commerce Ministry officials.

Besides Senators, the meeting was attended by officials of Commerce Ministry.