Pakistan-Trade Policy
Pakistan on Friday announced new Trade Policy for the current financial year, envisaging exports target of 22.1 billion dollars, fifteen percent higher than the last year.

Announcing the Policy over Radio and Television Network, Commerce Minister Chaudhary Ahmad Mukhtar said the policy allows import of diesel and fuel oil from India due to cheaper transportation cost.

In case any Indian manufacturer of CNG buses makes a firm commitment to establish manufacturing of such buses in Pakistan, the Government may provide special dispensation for import of ten buses by road from each possible investor as test consignment.

It has been decided that import of machinery and equipment for mining and grinding of minerals, along with spares, would be allowed from India.

Rice farm machinery will be importable from India through Wagah by road.

The total merchandise exports for the last year were 19.22 billion dollars, with a net increase of 2.246 billion dollars in two years which is a record.

Imports last year stood at 39.97 billion dollars giving rise to a trade deficit of 20.7 billion dollars.

The underlying causes for the trade deficit were increase in oil prices, import of wheat, increase in price of palm oil, import of raw cotton and fertilizer and increase in import of machinery.

The Commerce Minister said the government is committed to providing complete zero rating to exports by refunding of indirect taxes on input cost incurred on manufacturing of merchandise which is exported.

Gold, silver, platinum, palladium, diamond and precious stones would be exempted from levy of customs duty and sales tax with a view to increasing their exports.

Subsidy given from export development fund would be increased to eight percent or fifty percent of the mark up to assist exporters to comply with environmental standard.