Pakistan, which is yet to ratify the South Asia Free Trade Area (Safta) agreement, has announced to endorse it at the next cabinet meeting after the Eid-ul-Azha.
The Daily Times quoting Commerce Ministry official yesterday reported the ministry of commerce submitted a summary to this effect to the cabinet secretariat, and it is likely to be taken up at the next cabinet meeting and that could be a special cabinet meeting for its approval.
Pakistan is required to ratify the agreement and submit its ratification instrument to the Saarc secretariat for formal notification well before June 30, 2006.
Saarc members are aiming to enforce the trade agreement from July 1, 2006.
The Saarc agreement has four annexes that is, a list of sensitive items, rules of origin, technical assistance to least developed countries of Saarc and revenue compensation mechanism for these countries. It was decided with consensus that the first tariff reduction will be undertaken by all member countries on July 1, 2006. Nepal, however, will do so in August 2006.
Besides, the revenue compensation mechanism will be available to the LDCs of Saarc not before July 1, 2007. Accordingly, before July 2006 only the annex relating to technical assistance to the LDCs can become operational.
Meanwhile, Federal Minister for Commerce of Pakistan Humayun Akhtar Khan Saturday said Safta agreement had been sent to cabinet committee and hoped that it would be approved in the current year.
