KARACHI – Free Trade Agreement (FTA) with China has not only resulted in heavy losses but it has become a hurdle in reducing unnecessary imports, a business leader said Saturday.
A free trade deal with China resulted in a trade deficit of $14 billion dollars during 2017-18 which broke the back of the local industry, said Shahid Rasheed Butt former President ICCI.
Pakistan’s exports have been recorded at $1.86 billion as against imports of $12.7 billion during last year with trade deficit recorded at $10.8, he said.
Shahid Rasheed Butt said that the FTA damaged the industrial sector of Pakistan while FBR lost revenue to the tune of Rs32 billion during the first year, he added.
He said that Chinese goods are flowing into Pakistan resulted in heavy losses, therefore, the government should impose regulatory duty and assign quotas to Chinese goods.
Chinese manufacturers should be asked to establish their units in Pakistan so that it can result in employment and revenue, he added.
He said that Pakistan losses are increasing every year as China is only interested in importing raw material; it imports finished goods from other countries.
China has also inked a number of trade deals with other countries and blocks after signing FTA with Pakistan in which Beijing has given them more relaxations.
He noted that China has been undue favours in the trade agreement which is against the principle of the level playing field and this agreement is damaging Pakistan’s economy.
National interests should not be compromised to please friendly countries, he said.
