LAHORE, Oct 22: Commerce Minister Abdul Razak Dawood on Monday said businessmen had grossly misused the low-cost export refinance facility in the past, and built bungalows and acquired Pajeros.

“The days of obtaining export refinance at as low rates as 3-6 per cent have already gone. The facility is still available to the exporters but at a little higher rate,” he told the exporters and businessmen at two separate gatherings. “Under an IMF programme it is impossible for us to revise down the rate of the export refinance.”

Speaking about the measures the government is considering to help the exporters, Dawood said the next round of wide-ranging “tariff reforms was due to be implemented from the next financial year to make raw materials available to them at cheaper rates so that their cost of production could be brought down.”

The government plans to slash import duties to 25 per cent from the existing 30 per cent from next financial year.

He admitted that the despite all government efforts an export culture in the country could not be created. He said no one in Islamabad — PIA, Railways, Ministry of Interior, CBR, etc. — was export-friendly. “We have got to go a long way on this road,” he said.

The minister exhorted the “exporters to open warehouses in the US for quicker delivery of goods to their buyers.” “The EPB would subsidize the cost of warehousing to a maximum limit.”

He said the government would take up the issue of delay in the clearance of the shipments of the Pakistani goods at the New York port. He also promised that the matter of the “European importers delaying their orders from Pakistan till the beginning of 2002 to take advantage of duty-free imports would be taken up with the EU and resolved.”

Dawood said the EU decision to remove tariffs from the imports from Pakistan from January 1, 2002, as well as to enhance textile quota by 15 per cent had open a “great window for us”. He said the government wanted to use these trade concessions for “creating a European textile constituency in Pakistan for a sustainable duty- free status.” For this purpose, the exporters would have to “seek joint venture (JV) partners in the EU states.” He said he wanted to use the additional quota for “encouraging small manufacturers, JVs, and new comers.”

He said Pakistan was also trying to seek free market access in the US, Canada, Australia, Japan, China, Bangladesh, Sri Lanka and Kenya. He said free trade agreements would boost the industry and help recover economy. He was hopeful of Pakistan’s success in securing trade concessions from the US and other countries.

The minister admitted that sales tax refunds and duty drawback claims were not being released, and the government was using money of the businessmen. He said he had discussed this matter with the president last week and apprised him of the situation.

To a query, he said Pakistan had hired a public relations firm in the US to improve the country perception of Pakistan. “In this regard we are being financed by some of our exporters,” he said.

He said a team of underwriters was in Pakistan to discuss the issue of additional war risk surcharge on imports and exports from Pakistan. He said the visit would improve the situation for the exporters.

To a question, the minister categorically stated the ban on import of used autoparts would never be lifted. “There are many crooks among the old autoparts importers, who are destroying the local industry. Hence, we do not intend to lift the ban,” the minister said.