‘Pakistan rationalising duty structure vis-à-vis Afghanistan’

KARACHI: Pakistan is reviewing and simplifying duty structure vis-à-vis Afghanistan to promote bilateral trade, commerce adviser said in a meeting with traders to discuss tariff barriers on kinnow exports.

Adviser to the Prime Minister on Commerce Razak Dawood said Pakistan wants to see people of Afghanistan get economically strong.

“Existing procedures to facilitate Pak-Afghan trade is being made simple and feasible,” a statement quoted Dawood as saying.

“Duty structure is being reviewed and simplified to facilitate bilateral trade,” he said.

Afghanistan imposed duty on kinnow from Pakistan that affects 10,000 tons. The action was in retaliation to Pakistan's duty on Afghan imports.

Duty imposed on Afghan products by Pakistan should be reviewed so that Afghanistan also withdraws duty on import of Pakistani kinnow, said Waheed Ahmed, patron-in-chief of Pakistan Fruit and Vegetable Exporters Importers and Merchants Association

Exporters said the government should exercise foreign diplomatic expertise in resuming and retaining tax-concessionary kinnow exports to Afghanistan and Indonesia and getting back a lucrative Iranian market.

They apprised the commerce adviser of issues related to export of fruits and vegetables in general and of kinnow in particular.

Quota of Pakistani kinnow by Indonesian government is due to expire on 30 December and if the quota is expired, Pakistan will be deprived of the demanding market. It is, therefore, essential to have an immediate negotiation on issuance of a new quota by Indonesia, Ahmed said. The meeting was informed about the ban imposed by Iran on import of Pakistani kinnow and its subsequent repercussions. Iranian market accommodates 60,000-70,000 tons of Pakistani kinnow. The market is closed for many years.

Sri Lanka last week took back the increase in cess on import of kinnow and mandarins from Pakistan. The cess was reverted to 30 Sri Lankan rupee per kilogram from Rs160/kg.

The Sri Lankan government had jacked up regulatory duty on the import of kinnow from Pakistan. The increase would lead to an increase in price of Pakistani kinnow to Rs35/piece in Sri Lanka from Rs10/piece.

Pakistan produces more than 2.4 million tons of citrus fruits and of which kinnow accounts for 70 to 80 percent. Fruit exporters are expected to export $210 million of citrus to meet 350,000 tons target this season.

Kinnows are exported to Indonesia, the United States, European countries, and Russia.

The kinnow sector is worth around Rs125 billion and the entire economy of Bhalwal and Sargodha depend on its production while about 250 kinnow processing factories located in Punjab provide direct employment to 250,000 people.