Tap potential in Pakistan, exporters told.

 Officials of the Department of Commerce will meet exporters in various cities across the country and brief them on the new business opportunities available as a result of Pakistan pruning the list of negative items.

Announcing this at a meeting organised here on Friday by the Federation of Indian Export Organisations (FIEO), Commerce Secretary Rahul Khullar said the officers would start touring the country after the ongoing session of Parliament. Joint Secretary in the Department Arvind Mehta and couple of other colleagues would be coming to Chennai and other places in South India, he added.

Apart from highlighting the potential of the new opportunities, the exercise was aimed at dispelling the belief that trade normalisation between the two countries was only for Punjab. “Please do not get misled that Punjab of this side will integrate with Punjab of that side… if they can trade [with Pakistan] you [exporters across the country] can as well,” he said.

When a participant, during the interactive session, pointed out that Pakistan had brought almost all engineering items under the negative list, Mr. Khullar urged the exporters to see the potential in making use of the opportunities. Up till February 29, Pakistan had a positive list of less than 1,000 items and a negative list of 8,000 items. “Think of the reduction [subsequently in the negative list] to 1,200… it is the first big change,” he said.

Keeping things on negative list would not help as the items would still find their way into Pakistan through Dubai, he said. The authorities in Pakistan were aware of this and the negative list was expected to go by end of the year. “We are trying our level best that the negative list is dismantled,” he added.

On abolition of deemed export drawback benefits for power projects, he said it followed abuse of the provisions by non-mega power projects. There was no question of restoring the benefits until the issue was resolved.

Exporters raised various issues, including the impact of the Budget announcement to levy service tax on a basis of negative list and the need to provide interest subvention for exports. While urging exporters to submit their representations early, as the Foreign Trade Policy Supplement would be announced next month end, Mr. Khullar assured them that issues concerning other departments would be taken up with them.

FIEO President Rafeeque Ahmed said the slowdown in emerging and developing economies was of great concern as the exporters were consciously moving away from advance economies.

Source : thehindu.com