India withdraws tariff concessions: Pakistan avoids retaliation
By Our Staff Reporter
ISLAMABAD, Feb 26: Pakistan on Monday demonstrated restraint and avoided a tit-for-tat reply to India’s unilateral decision to withdraw tariff concessions under the South Asia Free Trade Agreement (Safta).
Pakistan announced it would explore all possible options to challenge the Indian move to withdraw the tariff liberalisation programme.
Pakistan said the decision was in violation of Article 7 of the trade agreement which had been in effect since July 2006.
The decision came at the second meeting of the Safta Ministerial Conference in Khatmandu.
“Pakistan will not review the tariff concessions extended to all Saarc countries, including India,” said Secretary Commerce Syed Asif Shah at a press briefing in Islamabad.
"Pakistan remains committed to continuing with the trade liberalisation programme as stipulated in Safta,” he said when asked if Pakistan would come up with a similar action.
Mr Shah said the Indian decision would be debated at an appropriate level.
"We would take all possible steps available under the agreement," he added.
He said Commerce Minister Humayun Akhtar Khan was in Khatmandu to resolve the issue. He would be back on Tuesday to lay down parameters for a future action on the issue.
"We would evolve a strategy and move ahead. You can’t just sit, you have to react, which we will. We will consult all stakeholders on the issue," he said in reply to a question.
