INP-WealthPk

Govt asked to secure tariff cuts on export of sports goods

March 03, 2023

Raza Khan

Exporters have demanded the Pakistani government negotiate tariff concessions with other countries on export of sports goods. “The government should include sports goods in the list of goods given tariff concession while signing trade agreements with other countries,” Mohsin Masood, Secretary General of Pakistan Sports Goods Manufacturers and Exporters Association (PSGMEA), told WealthPK.  

He said that sports goods manufacturing is a well-established industry in Pakistan, but it never got the attention of the successive governments. “Pakistan is producing world-class sports products, including footballs, basketballs, hockey sticks, sportswear, boxing equipment and gloves,” Masood added.

He was of the view that sports goods manufacturing mostly relied on exports due to a lack of sports activities in the country. “We need government support in exporting our products,” he said. He said that if the government could secure some tariff concessions on exports to various countries, exports of Pakistan’s sports goods could be enhanced substantially.

He said that recently Pakistan had negotiated zero-duty in Uzbekistan for export of several products under Uzbekistan Pakistan Preferential Trade Agreement UPPTA), but not a single sports product was included in the list. Masood said that Pakistan and Azerbaijan were expected to sign PTA in near future. “The Pakistani government should also negotiate for tariff concessions for sports goods,” he demanded. 

He said that Central Asia could be a good market for sports goods, especially footballs, volleyballs, basketballs, and sports gloves if the government tried to negotiate and include these items on the list for items given tariff concessions.  

He said that Pakistan’s sports goods exporters only had concessions on tariffs in exports to European Union countries under the GSP-Plus status. “Pakistan’s sports goods exports to the EU countries had grown during last few years due to concessions on tariffs,” he added.   

Under the current GSP-Plus status, Pakistan is given zero-rated tariff preference on almost 91% of tariff lines to the EU market. According to the ministry of commerce, Pakistan’s overall exports to EU increased by 47% under the GSP-Plus during last seven years. The exports to EU increased from $6.095 billion in 2013-14 to $8.943 in 2020-21. 

Pakistan has free trade agreements and PTAs with several countries that also include concession in tariffs on certain items, Masood said, adding the government should also negotiate with those countries to include sports goods as well.

The PSGMEA’s secretary general urged the government to support the sports goods industry in research and development. He also suggested that technical training for manufacturing of sports goods must be provided as it would add good human resource in the industry and boost job creation.

Masood also demanded that Trade Development Authority of Pakistan (TDAP) should prepare a smart strategy for ensuring maximum publicity of traditional and non-traditional sports goods in international markets. According to Pakistan Bureau of Statistics (PBS), the country’s exports of sports goods were recorded at $364.89 million in the last fiscal year 2021-22 compared to $278.48 million in the previous year.

According to TDAP, the United States of America, Spain, Germany, the UK, Japan, France and the Netherlands are the top export destinations for Pakistani sports goods. Footballs, soccer balls, volleyballs, rugby balls, basketballs, cricket balls, shuttlecocks, gloves, hockey sticks, sportswear and boxing equipment are the major products of Pakistan’s sports good industry.

Credit: Independent News Pakistan-WealthPk