Pakistan has suffered a revenue loss of Rs. 26.856 billion during FY19-20 due to the general exemption on imports from China under the Pak-China Free Trade Agreement (FTA).
According to the Phase-II of China Pakistan Free Trade Agreement, both countries liberalized 75 percent of tariff lines for each other in a period of 10 years by China and 15 years by Pakistan. However, China immediately eliminated tariffs on 313 priority tariff lines of Pakistan’s export interest.
Overall, China had granted concessions to products, which include textiles and garments, seafood, meat, and other animal products, prepared foods, leather, chemicals, plastics, oilseeds, footwear as well as engineering goods including tractors, auto parts, home appliances, machinery, etc
Data from the Federal Board of Revenue (FBR) also revealed that the government has suffered a revenue loss of Rs 45.020 billion during the current fiscal year due to the FTAs and PTAs signed with different countries.
The data revealed that under SRO 659(I)/2007, the general exemption on imports from China under Pak-China FTA caused a revenue loss of Rs. 26.856 million.
The general exemption on imports from SAARC countries caused a revenue loss of Rs. 231 million during the period under review. The imports from SAARC countries under SAFTA Agreement have a revenue impact of Rs. 1,602 million.
The general exemption on imports from SAARC countries under SAFTA Agreement caused a revenue loss of Rs. 15 million.
Under SRO 659(I)/2007, the general exemption on imports from China under the FTA has a revenue impact of Rs. 6,911 million during 2019-20.
The general exemption on imports from Malaysia under PTA under SRO1261 (I)/2007 (Table-I) caused a revenue loss of Rs. 2,517 million during this period.
Under SRO1261(I)/2007 (Table-II), the exemption on imports from Malaysia under PTA has a revenue impact of Rs. 922 million.
Under SRO741(I)/2013, the general exemption on imports from Indonesia under Pak-Indonesia PTA caused a revenue loss of Rs. 3,647 million.
The general exemption on imports from Sri Lanka under Pak-Sri Lanka FTA under SRO280 (I)/2014 caused a revenue loss of Rs. 480 million.
Under SRO 280(I)/2014, the general exemption on imports from Sri Lanka under Pak-Sri Lanka FTA caused a revenue loss of Rs. 1,773 million during 2019-20.
