ISLAMABAD: Pakistan and four-member European Free Trade Association (EFTA) on Monday initiated talks to finalise an agreement to take up the bilateral trade from the current level of less than one billion dollars.
The first meeting of the joint committee of Pakistan and EFTA member states was held in Geneva where both the sides discussed the status of bilateral trade and investment and agreed to explore future opportunities.
EFTA is a free trade association of four member states, comprising Iceland, Liechtenstein, Norway and Switzerland. Currently, the bilateral trade value stands at $588 million despite an enormous potential.
Secretary Commerce Younus Dagha led the Pakistani side and showcased Pakistan’s open and friendly investment policies, with the recent rise in inward investment in the country.
Dagha made a detailed presentation on trade and investment opportunities in Pakistan, highlighting the improvements in the law and order situation, and rapid gains in the areas of energy, telecommunications connectivity and other infrastructure as a result of effective actions undertaken by the government.
“The developments under CPEC (China-Pakistan Economic Corridor) are a particular milestone, which is proving beneficial for not only the region but also for European investors in Pakistan,” he said in a statement. “By entering into joint ventures with Pakistani businessmen, European Free Trade Association businesses could establish their footprint in the region and benefit from Pakistan’s increasing connectivity in the region of South and Central Asia.”
Pakistan is already enjoying a preferential trade status generalised scheme of preferences (GSP Plus) for its exports to 28-member European Union (EU) block, which represents 35 percent of the country’s over $20 billion exports. Bilateral trade between Pakistan and European Union stands at more than seven billion dollars with balance of trade nearly equal.
Officials said Pakistan’s exports to the EU rose 37 percent during the last three years owing to GSP Plus status awarded in December 2013 under which zero tariffs are for 20 percent of the country’s exports and preferential rates to 70 percent of the exports. Main exports are textile and clothing, while imports include machinery and chemical.
UK expressed willingness to continue supporting Pakistan after its exit from the EU block. British market is important to Pakistan as 25 percent of the country’s trade in the EU is with the UK.
Officials of Pakistan and EFTA agreed to hold meetings more frequently to facilitate trade, businesses and investment and explore further avenues of mutual cooperation.
Both the sides also agreed to enhance cooperation in the areas of encouraging joint ventures and export promotion. They also agreed to discuss possibility of a preferential trade agreement between Pakistan and European Free Trade Association.
Pakistan would submit a proposal on a possible scoping exercise for consideration of EFTA members.
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