$13.7Bln Exports: Pakistan Liberalises Imports
By Sheraz Aslam - Pakistan Times Staff Correspondent

ISLAMABAD: The new Trade Policy sets an export target of 13.7 billion dollars and 16.7 billion dollars for imports.

Announcing the trade policy for the current financial year over Radio and TV networks on Thursday evening, the Commerce Minister, Humayun Akhtar announced a number of incentives to help businessmen achieve the export target.

Strategy

Humayun Akhtar said the export strategy will be based on volume and value addition and providing all stakeholders an environment that allows them to efficiently pursue their aspirations.

Exporters capabilities would be developed to compete and improve product range and quality, achieve export diversification, pursue multilateral, regional and bilateral market access aggressively, encourage women role in trade and business and identify next generation product sectors to achieve the desired quantum leap specially through joint ventures and strengthening of supply chain capacity.

The policy provides special initiatives for the export of non-traditional items like gems and jewellary, fish and agricultural products and promote “Made in Pakistan” products.

Role of Private Sector

Federal Government in collaboration with provincial and district governments and private sector would provide assistance for rehabilitation of the infrastructure of existing industrial estates. For this purpose, the Government will contribute upto the 50% of the cost.

A communication city will be established in Islamabad to provide all infrastructure facilities to IT, telecommunication and media companies to promote the export of information technology products.

The garment sector will be provided technical, commercial and marketing support at the cost of Export Promotion Bureau to improve its productivity and product range. The private sector will be encouraged to invest in green houses and cool chain infrastructure to increase export of value-added horticultural products. They will be provided facility of concessional financing and the first six per cent of mark-up rate will be picked up by the Export Development Fund.

Horticulture Products

It has been decided to develop Pakistan standards for horticulture products to increase export of horticulture products. To facilitate export of pharmaceutical products, 50% subsidy is being restored for registration of products in foreign countries.

The policy also provides incentives for priority export sectors including leisure equipment, fisheries, shrimp-farming, furniture, gem and jewellery, footwear and medical equipment.

To encourage export of finished products of granite and marble as well as furniture from far-flung areas, inland export subsidy of 25% of freight will be allowed.

A Suppliers Credit Fund of 10 million dollars each is being set up to facilitate development of markets in Africa and Central Asian Republics for exports.

Sales tax for Textile

The Commerce Minister said the sales tax regime for textile products is being reviewed. However, as a first step, ginned cotton has already been exempted.

The existing freight subsidy scheme has been extended for another year.

In order to facilitate re-export of imported goods, the condition of value-addition has been waived.

The government will provide hundred per cent cost of consultancy services to private parties for development of accredited testing facilities of international standards within the country. A country-specific programme beginning in collaboration with Japan will be launched to identify the hurdles in export process and remedies.

Related Measures

Other measures announced in the trade policy include increase in the cost of samples for export to 25,000 dollars, increase in the limit of gift parcel scheme to 5,000 dollars. Humayun Akhtar said new improved duty drawback rates will be announced in a few days for the man-made fibre sector.

Turning to import strategy, he said relocation of industrial projects from abroad has been allowed in all manufacturing and industrial sectors. Taxes and tariffs have been reduced on agro-industrial sector-related machinery and raw materials.

Under gift and transfer of residence scheme, import of tractors, bulldozers, laser land levellers and combined harvesters is being allowed. Import of motor cycles in CKD kits has also been allowed to recognized assemblers.

The minister said that the units in export processing zone shall export upto 20% of their production to tariff areas in Pakistan and 80% to foreign countries.

Import of animal fur is being allowed to facilitate the leather garment industry. Ban on import of cotton waste has been lifted.

Import of used hand plant, machinery and equipment excluding passenger transport vehicles, trucks will be allowed to the construction, minding, oil and gas and petroleum sector.

Cabinet Approves

Earlier, the federal cabinet has approved the trade policy for financial year 2004-05 in which the export target has been fixed at $13.40 billion.

Federal Minister for Commerce, Hamayun Akhtar will be formally announcing the policy here this evening.

Earlier, federal minister had briefed the members of the cabinet about salient features of the policy in a meeting chaired by Prime Minister, Chaudhry Shujaat Hussain.

Sources told that several schemes with the help of government would be introduced for the betterment of industrial zones under this policy.

The trade policy is likely to extend relief packages for textile, engineering, fruits, vegetables and fisheries sectors besides offering incentives to investors and manufacturers.●