Pakistan is going to seek zero-rated duty on exports to China. Massive under invoicing on imports from China would be checked so that Pakistani exporters get equal benefit.

Chinese companies have shown interest in relocating their textile units to Pakistan or are interested in entering into joint ventures. The Chinese are keen to bring their machinery for producing quality textile goods in return for local set-up, like factory premises. Issues like market access, high cost of doing business and exchange rate are retarding the growth of Pakistan’s exports. However, the country is working on these issues and has already devalued the currency by up to ten per cent.

The extension given by the European Union over GSP Plus has helped Pakistan increase exports of value-added textile goods by up to 90 per cent. As a result, total exports grew by 13 per cent during the July-February period of the current fiscal.

Also, the package given to exports in the shape of duty drawback on taxes has helped boost textile exports between January and February. Pakistan and China will have a second round of discussions on the free trade agreement next month. Pakistan needs foreign investment and would encourage any sector which helps increase external trade and boost exports.