Pakistan Asks For Export Tax Exemption For Garment Items To India
Pakistan
It may be asked to allow its textiles and clothing items to be exported to India tax-free, which was raised by Bangladesh on Thursday at a meeting between the two ministers of Commerce.
Mr. Nair, Secretary General of the India Textile Industry Federation, said: "Pakistan is the only country in South Asia Free Trade Area (SAFTA) that does not enjoy the tax exemption from its textiles and clothing exports to the India market." DK
The proposal of the Ministry of Commerce to provide zero tariff to all textiles in Pakistan to enter the India market is based on geopolitical considerations rather than economic considerations.
Elaboration of the current permitted by their respective countries
textile
At the time of export, Mr. Nair said: "so far, Pakistan has a vetoed list of more than 1200 products, which are not allowed to be exported to India, including 78 types of textile products.
On the other hand, India has a list of 878 categories of sensitive items imported from Pakistan, including 288 categories of textile products.
However, the fundamental difference between the two lists is that India avoids tariff concessions only in the sensitive list, while Pakistan prohibits imports from the list.
Pakistan stipulates that this veto list is only applicable to India and does not apply to other countries. "
When analyzing the competitiveness of Pakistan's textile projects and India's products, Mr. Nair said: "Pakistan is a competitive textile producing country, and is competitive in India in terms of wide fabrics, polyethylene / polyester fabrics, finished products and clothing items.
Because textiles are the largest in Pakistan.
Exit
The government has given specific incentives to the textile sector to enhance its competitiveness.
However, India and Pakistan still have room to improve textile trade.
But the measures in this respect are reciprocal and interchangeably, so that both countries can benefit from the competitiveness of all sectors of the textile value chain.
We have asked the government of India not to give Pakistan unilateral concessions in textile trade, because this will have a serious negative impact on our industry, especially the scattered small and medium-sized units. "
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