Pakistan could loose its biggest market, as the European
Union has declining to sign a free trade agreement (FTA)
with it, arguing that Pakistan''s economy is not big
enough for such a deal.
to a report in the Pakistni daily, The Dawn, with the
EU''s refusal to sign the FTA, Pakistan would be the
only country in the region in the coming years to lose
its biggest market.
Dawn quoted n unidentified Pakistani official as saying,
"Pakistan''s reliance on the EU market and the US
is too much and in case the EU market is lost, Pakistan
would stand nowhere with regard to exports."
the other hand, the EU has decided to ink a FTA with
India that would facilitate greater demands for Indian
products at zero duty.
now apart from India and Pakistan, all the SAARC countries
as LDC contracting states are exporting their products
to EU at zero duty and in case the FTA deal is struck
with New Delhi, Indian products would also enjoy zero
duty and capture the market of Pakistani products also.
This is really an alarming situation for Pakistan,"
the official told The Dawn.
has communicated to Brussels that Pakistan is the frontline
state against terrorism and in case trade cooperation
is not extended to Pakistan, terror activities would
further increase because of poverty in the country.
poverty situation would worsen in the country if trade
under the FTA is denied," the daily quoted a Pakistan
foreign office officials as saying.
to Pakistan''s commerce secretary Asif Shah said commerce
minister Humayun Akhter Khan would soon visit EU countries
separately to allay their misgivings
On the size of Pakistan''s economy.
said the EU in response to Pakistan''s request for the
FTA has communicated that it frames FTAs with countries
keeping in view its economic considerations. He said
the EU is of the view that since Pakistan''s tariff regime
is liberalised, it does not need a trade deal with Islamabad.
said that Pakistan had succeeded in convincing EU''s
that Pakistan''s economy was growing rapidly in the region
and the size of the economy was also expanding.