LAHORE: The All Pakistan Textile Mills Association (APTMA) has suggested the Kazakhstani government to sign a memorandum of understanding (Mou) with the association to strengthen economic relations between the two countries, Profit has learnt.
According to details, a Zoom [Online] meeting between APTMA and the Kazakh government was held for the first time on Thursday wherein Vice Minister of Industry and Infrastructure Development of the Republic of Kazakhstan Marat Karabayev, APTMA Chairman Abdul Rahim Nasir, APTMA Chairman Northern Zone Hamid Zaman, Senior Vice Chairman Kamran Arshad, Secretary General Mohammad Raza Baqir and leading APTMA members from Southern and Northern zones were present.
Addressing the meeting, the Kazakh minister while reiterating his commitment to boost trade and economic ties between the two countries said that there was tremendous scope for promoting economic cooperation between the two sides.
Speaking to participants, the minister explained how the Kazakh government was offering incentives, benefits and tax breaks to foreign investors for setting up industries in special economic zones (SEZs).
“Cheap recycled textile fibers and inexpensive electricity @ US¢3/KW offer a bonanza to foreign investors. There is a need for greater communication between the people on both sides. It is imperative for both countries to find all available avenues to further strengthen the centuries-old ties. The whole region is ready to benefit from the peace and stability in Afghanistan and there is a need to multiply the current bilateral trade volume of $45 million,” he said.
The minister also invited the Pakistan business delegation to Kazakhstan and offered to send a similar business delegation for adopting practical measures for expanding economic and trade ties.
Speaking on the occasion, the APTMA chairman highlighted the strengths and potential of textile industry of Pakistan.
He informed that the textile sector in Pakistan is on an upward trajectory with a lofty export target of $21 billion for the current year, a new investment of $5 billion, addition of 100 new plants, and the creation of 500,000 extra jobs.
He also pointed out issues adversely affecting bilateral trade including logistic issues, obtaining and using Letters of Credit (LC) in trade with Kazakhstan, language barriers in labeling the goods in Kazakh or Russian language, difficulties in land rout due to security situation in Afghanistan and delay in signing of Preferential Trade Agreement (PTA).
With a view to foster economic relations between Pakistan and Kazakhstan, the association’s chairman proposed an MoU between APTMA and Kazakhstan government to pave way for the consolidation of economic ties.
“Frequent exchange of trade delegations, mutual capacity building in textile sectors, establishment of joint ventures, early signing of FTA, strengthening of banking channels and utilization of OIC, ECO and Shangai Trade Cooperation platforms will help in uplifting trade statistics,” he stressed.
He further emphasised the need of strengthening banking channels between Pakistan and Kazakhstan, an early signing of a PTA, utilisation of OIC, ECO, and SCO platforms for expansion of bilateral trade, joint investment in the textile industry, establishing joint ventures, frequent exchange of trade delegations, synergies in bilateral trade expansion, mutual capacity building in textile sectors, and the bilateral exchange of business delegations to identify trade and investment options as a way to solidify trade and investment relations between the two countries.
Moreover, he hoped that the business communities of both countries would benefit from the TIR to cut cargo costs.
