- The expert calls for the manufacture of the country competitive.
- Pakistan does not receive much income from American imports: Dr Sohail.
- He says Pakistan The trade policy problems identified by us are real.
Islamabad: While the government led by Prime Minister Shehbaz Shehbaz Sharif aims to address the reciprocal price of 29% of US President Donald Trump on the country, the initial estimates suggest that said functions could cost Islamabad between $ 500 and 700 million dollars, The news reported Wednesday.
Many experts consider it an opportunity for Islamabad in the event of increased tariffs slapped in regional countries, especially against China. It is premature to determine any exact losses or advantages at this stage, however, one thing is guaranteed, this step will be uncertain and can cause a recession in the American markets.
The Trump administration last week had announced reciprocal prices in several countries, including the taxation of 29% of Pakistan goods in response to a 58% rate on American products billed by Islamabad.
According to a senior official of the Ministry of Commerce, Pakistani exports to the United States will now face a total rate of 39%, including a basic import right of 10%and a reciprocal rate of 29%.
The United States is the largest unique export market in Pakistan, with exports worth around $ 6 billion per year, mainly textiles.
The new reciprocal prices established by the Order of the American President are added to all other rights, costs, taxes, abuses or charges applicable on certain articles such as the existing price on synthetic clothes is 32%, the new price will be 61% (32 + 29), reveals a document prepared for the premier by the Ministry of Commerce on the impact of American prices on Pakistan Export.
Meanwhile, Prime Minister Shehbaz was a steering committee of 12 members to meet the reciprocal prices.
In addition, according to the Minister of Finance, Muhammad Aurangzeb, a high -level delegation will go to Washington to transmit the position of Pakistan and an additional dialogue with the US officials.
Expressing his opinions on the possible impact of these prices, Dr. Safdar Sohail, a former bureaucrat who belonged to the commercial group and commerce declared to the publication that the move of the United States could be considered as two actions combined at once against the commercial policy and the activation of the laws on commercial defense such as anti-dumping actions, by the World Trade Organization, the System of Trade), etc. In routine, these actions would take years by the World Organization (WO).
In this case, as there was a country that did it, for the rest of the world, they had to innovate in the choice of the stallion and be fast so that the call process gives kicks at the same time as everyone and immediately.
Dr. Sohail was of the opinion that, with regard to the impact of reciprocal prices on Pakistan, the evaluation of Pakistan Business Council (PBC) seems very balanced. There is no need for alarm and panic and we have to hire our most important bilateral trading partner in a constructive manner.
As part of an International Monetary Fund Program (IMF) with a serious vulnerability of the external sector, Dr. Sohail said that we should focus more on Pakistan’s permission an industrial policy to make the manufacture of the competitive and green country in a unified setting, benefiting from the loan of resilience and sustainability of the IMF.
Many trade policy issues identified in the diagnosis of Pakistan’s trade policy by the United States three days ago are real.
Assuming Americans on the trade deficit, between Pakistan-US, the expert said that Washington’s approach should not be very difficult because Pakistan did not receive much revenue from American imports.
It should also not be difficult to respond to most concerns of the United States, because we already approach some with IMF reforms, he added.
Dr. Sohail stressed that the real challenge was to integrate most of these concerns and the Green concerns of the EU in the Pakistan green industrialization strategy and to implement it despite non -dizzying and very enriched disloyal business practices.
We can only delay it only to our risks and dangers. Our development would suffer more because of our failure on this account than the temporary increase in the United States prices, he concluded.