ISLAMABAD: Senate Standing Committee on Commerce has labelled the Free Trade Agreement (FTAs) with China and Sri Lanka “disasters” for the country as they were negotiated by those with little knowledge of such pacts.
Presided over by Senator Anusha Rehman, the Committee discussed different issues related to trade including barter trade with Iran which is not giving the desired results due to exporters’ reluctance in filing Electronic Import Form (EIF).
“If Commerce Ministry evaluates FTAs, it will conclude they are a disaster. Those who negotiated FTAs did not know what they were talking about,” said Senator Saleem Mandviwala. He was supported by Chairperson Standing Committee, Anusha Rehman who termed FTA with Sri Lanka also a disaster.
Need stressed to boost Sri Lanka-Pakistan trade
The remarks from PPP Senator came a day before the official visit of President Asif Ali Zardari to China where issues of trade will also come under discussion.
Senator Mandviwala argued that until officials are knowledgeable about FTAs and PTAs, how they can possibly negotiate a deal for the country.
The Committee also discussed the issues of barter trade with Iran as this mechanism has not achieved the desired results.
Chairman Dry Fruits Association, Haji Faujan Khan, who was invited to explain the reasons for the failure of barter trade system with Iran, informed the Committee that over 600 trucks are stuck due to not filing EIF because traders are not ready to reveal their products and trading partners. He further contended that the government should allow barter of goods with Iran (export and import) without going into details.
However, top brass of Commerce Ministry said that only 10 items are allowed under the barter trade mechanism.
Chairperson Standing Committee pointed out that India and UAE are engaged in barter trade with Iran with the involvement of a few of their banks.
Shakeel Ahmed Mangnejo, Special Secretary Commerce Ministry clarified that State Bank of Pakistan (SBP) is not ready to support any banking link with Iran due to restrictions/ sanctions, adding that they have explained all details to the exporters but they are not listening.
The Committee decided to constitute a Committee of Commerce Ministry officials and Pakistani businessmen involved in barter trade with Iran to sort out the outstanding issue. Newly appointed Chief Executive Officer (CEO) was asked to have a meeting with the businessmen at the Chamber along with other officers to explain the proper mechanism to fill EIF and other procedures.
Commerce Ministry, in its written reply, informed the Committee that there are established banking channels of other countries such as UAE, Hong Kong, China and Singapore with Pakistan and they are members of WTO; hence, no exemption for non-Iranian-origin goods from EIF had been provided.
Commerce Ministry further stated that a one-time waiver from submission of EIF for Iranian goods coming through land route is given in the consignments for which the Master Bill of Lading was issued till October 31, 2024.
The Committee also decided to take up the issue of posting of officials from other Ministries in Ministry of Commerce on deputation.
Copyright Business Recorder, 2025
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