APTMA proposes MoU with Kazakhstan to boost trade ties

LAHORE: The All Pakistan Textile Mills Association (APTMA) has suggested to the Kazakhstani government that a memorandum of understanding be signed between APTMA and the Kazakhstani government, which would play a positive role in strengthening economic relations between the two countries, Profit learnt here on Thursday.

According to details, a zoom [Online] meeting was held for the first time between APTMA and the Kazakh government whereas the meeting was attended by MaratKarabayev, Vice Minister of Industry and Infrastructure Development of the Republic of Kazakhstan, Chairman APTMA Abdul Rahim Nasir, Chairman APTMA Northern Zone Hamid Zaman, Senior Vice Chairman Kamran Arshad, Secretary General Mohammad Raza Baqir and leading APTMA members from Southern and Northern zones.

Addressing the meeting, the Kazakh minister said that there was tremendous scope for promoting economic cooperation between the both countries and he also reiterated his commitment to boost trade and economic ties between the two countries.

Speaking to participants, the minister explained in detail how the Kazakh government was offering incentives, benefits and tax breaks to foreign investors for setting up industries in special economic zones (SEZs).

“The cheap recycled textile fibers and inexpensive electricity @ US¢3/KW offer bonanza to the foreign investors. There is a need for greater communication between the people on both sides.

It is imperative for the both countries to find all available avenues to further strengthen the centuries-old ties. The whole region is ready to get benefit of peace and stability in Afghanistan and there is a need to multiply the current bilateral trade volume of $ 45 million by all means,” he said.

The Minister also invited Pakistan business delegation to Kazakhstan and offered to send a similar business delegation from Kazakhstan to Pakistan for adopting practical measures for expanding of economic and trade ties.

Speaking on the occasion, Chairman APTMA, highlighted the strengths and potential of textile industry of Pakistan.

Nasir informed that textile sector in Pakistan in on an upward trajectory with lofty export target of $ 21 Billion for the current year as against actual export of $ 15 Billion during the last year, new investment of $ 5 Billion in textile sector, addition of 100 new plants and creating 500,000 extra jobs.

Rahim 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, Chairman proposed to sign MOU between APTMA and Kazakhstan Government which would positively contribute to pave way for 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 the trade statistics.

There is a need of strengthening of banking channels between Pakistan & Kazakhstan, an early signing of PTA, utilization of OIC, ECO, and SCO platforms for expansion of bilateral trade, joint investment in the textile industry and establishment of joint ventures, frequent exchange of trade delegations, synergies in bilateral trade expansion, mutual capacity building in textile sectors, and bilateral exchange of business delegations to identify trade and investment options as a way forward to solidify trade and investment relations between Pakistan and Kazakhstan,” Nasir added.

Nasir also hoped that the business community of both the countries would benefit from TIR to cut cargo costs substantially.

The post APTMA proposes MoU with Kazakhstan to boost trade ties appeared first on Pakistan Today.

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