KARACHI (February 07 2010): Federal Commerce Secretary Zafar Mahmood informed business community that the foreign buyers were putting pressure on their Pakistani suppliers and manufactures to have storage facility abroad to stock three months supply or shift their manufacturing capacity abroad.

Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI) on Saturday, he said that the foreign buyers fear that Pakistani companies might not be able to fulfil orders on time due to prevailing law and order situation.

He suggested business community that if they received such advises from their buyers they must provide details of those companies to him so that he could take necessary action.

He said that the government was making efforts to get market access to European Union (EU) and preparing a strong case for the forthcoming EU meeting. He was hopeful that Pakistan would get GSP plus status very soon. Regarding signing of trade agreements with some countries, he said that a committee would be set up to prepare and evaluate agreements so that maximum advantage could be taken from those agreements.

Referring to the Free Trade Agreement (FTA) with China, he said that the agreement remains futile. Goods exported from Pakistan were rejected by the buying houses on the ground that they did not meet specification.

About Trade Organisation Ordinance (TOO), the commerce secretary said that National Assembly Standing committee is examining the ordinance and preparing a draft of legislation to be presented at the National Assembly for its approval. He said that three meeting were held to get input of business community and other stakeholders. The draft is likely to be finalised at the next meeting.

He advised KCCI to send its recommendations to be discussed at the meeting.

He further said small traders and shopkeepers association was also seeking to be registered under TOO.

About registration of fake associations under TOO, he said that the associations file application with complete documentation and it is not possible to inspect offices of each and every association. However, he assured that on receiving complaints the matter would be examined thoroughly.

Mahmood said that negotiation were underway on Afghan Transit Trade (ATT) and it was proposed that letter of credit (L/C) should be opened in Afghanistan for imports or full taxes should be collected at entry port and reimbursed at exit to curb smuggling.

Responding to a question, he said that the government was considering inclusion of five sectors in Value Added Tax (VAT) which were previously tax exempted, as the tax to GDP ratio in Pakistan is only eight percent. It must be increased otherwise Pakistan would face serious problems.

Acting President KCCI, Rasheeduddin Rashid said that the ATT has been massively abused by the unscrupulous elements in order to import products above their actual demand in Afghanistan.