The Senate Standing Committee on Commerce has strongly criticized Free Trade Agreements (FTAs) with China and Sri Lanka, calling them disastrous for Pakistan’s economy. Lawmakers argued that these agreements were negotiated by officials lacking expertise, leading to unfavorable trade terms.
According to a media report, during a session chaired by Senator Anusha Rehman, committee members voiced concerns over various trade issues, including barter trade with Iran, which has failed to produce the expected results due to exporters’ reluctance to file Electronic Import Forms (EIFs).
Senator Saleem Mandviwala stated that if the Commerce Ministry properly evaluated the FTAs, it would recognize their negative impact. He asserted that the officials responsible for negotiating these agreements did not have a clear understanding of trade pacts. Senator Anusha Rehman agreed, adding that the FTA with Sri Lanka had also been detrimental to Pakistan.
The criticism came just a day before President Asif Ali Zardari’s official visit to China, where trade-related discussions are expected to take place. Mandviwala stressed that until competent officials with trade expertise are involved in negotiations, Pakistan will continue to suffer from poorly structured agreements.
The committee also reviewed issues surrounding barter trade with Iran, which has struggled to gain traction. Haji Faujan Khan, Chairman of the Dry Fruits Association, informed lawmakers that over 600 trucks remain stuck due to traders’ refusal to file EIFs. He argued that businesses are unwilling to disclose their products and trading partners and suggested that the government allow imports and exports with Iran without requiring detailed documentation.
However, Commerce Ministry officials clarified that only 10 specific items are permitted under the barter trade framework. Special Secretary Shakeel Ahmed Mangnejo further explained that the State Bank of Pakistan (SBP) is unwilling to establish banking ties with Iran due to international sanctions. He added that exporters have been informed of all regulatory requirements, but many continue to resist compliance.
In an effort to resolve the issue, the committee decided to form a working group comprising Commerce Ministry officials and business representatives engaged in barter trade with Iran.
