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Pak-China accord for business on barter system extended up to Dec

NAYYAR ZUBERI

KARACHI: The government has extended the Pakistan-China border trade agreement up to December 31, 2000 for business on "barter system".

Bilateral trade between Pakistan and China is conducted on the basis of the trade agreement signed between the two governments on January 5, 1963, whereas the border trade between Pakistan's Northern Areas and China's (Sinkiang province started in 1996 and is conducted on exchange of letters (agreements) on annual basis, with specific items and ceilings for trade.

The letters exchanged in 1993 covered goods worth Rs 200 million each way. Due to poor utilisation of the ceiling of Rs 200 million, the Pakistan-China Border Trade Agreement was extended upto December 12,1996 and then to December 31,1997. From 1990 to 1997, there was utilisation of Rs 70 million only against the ceiling of Rs 200 million.

The border trade agreement dated December 28,1993 has now been extended upto December 31, 2000.

The Northern Area Cooperative Bank Ltd., Gilgit, was the agency through which border trade with China was transacted till July 14,1996. Since 1973 when there was no other private business institution in Northern Areas, a private co-operative society now, named Northern Areas Traders Cooperative Society Limited (NATCSL) was given the monopoly in this regard.

The Northern Area Chamber of Commerce and Industry (NACCI) pointed out that operation of Border Trade Arrangement had led to a number of issues including trade quota and demanded that this and other facilities be provided to the members of NACCI.

NACCI has further demanded that sub-regional office of Export Promotion Bureau (EPB) should be established at Gilgit for the convenience of exporters and importers of Northern Areas.

It has also requested that the condition of production of National Tax Number (NTN) for the people of Northern Areas desiring import, export registration should be done away with and the EPB, Islamabad, be informed accordingly.