SIALKOT, Nov 16: The business community has urged the government to take it into confidence before announcing any new strategy for combating the prolonged decline in the exports after the September 11 terror attacks in the US followed by the war in Afghanistan.
During a special meeting held at the Sialkot Chamber of Commerce and Industry (SCCI) here on Friday, all the chambers of commerce and industry of Punjab, including Islamabad and Azad Jammu & Kashmir chambers, joined the hands to struggle for boosting the country’s exports as well as strengthening the economy.
The meeting also urged the government to tell the UN that there is a major decline in Pakistan’s all export-oriented industries after the US-led war in Afghanistan, putting the businessmen at the mercy of ‘un-ending’ financial crisis.
The business community also appealed to the UN to announce some incentive packages to help Pakistan out of the present crisis.
The meeting was presided over by SCCI president Daud Ahmad Chatta, accompanied by SVP Shaikh Naveed Iqbal and vice-president Raja Muhammad Athar Dar.
Those who attended the meeting are Munawar Mughal, president, Islamabad Chamber of Commerce and Industry; Zulfiqar Abbasi, president, AJK Chamber of Commerce and Industry; Abdul Sami, president, Sargodha Chamber of Commerce and Industry; Rana Nasir Mehmood, president, Gujranwala Chamber of Commerce and Industry; Suhail A Setthi, president, Rawalpindi Chamber of Commerce and Industry; Dr. Khalid Javaid, president, Lahore Chamber of Commerce and Industry; Mian Azhar Hussain, president, Jhang Chamber of Commerce and Industry; Mohammad Ilyas, president, Gujrat Chamber of Commerce and Industry; Mian Naeemur Rehman, president, Faisalabad Chamber of Commerce and Industry; and Muhammad Yausaf, president, Shaikhupura Chamber of Commerce and Industry.
The resolution, passed in the meeting, said that there was no doubt that the government of General Pervaiz Musharraf was struggling hard to inject new life into the sick economy, but there was an urgent need to do something extra-ordinary for the early provision of the ‘business-friendly’ atmosphere to earn much-needed foreign exchange by enhancing the exports.
“The exporters need some incentives to compete the other countries by introducing the best quality exportable goods at cheaper rates,” the participants added.
The FCCI president said that due to 65 per cent decline in total exports of all the export-oriented industries of Sialkot, the business community was facing financial crisis, as the future of the thousands of the small and medium entrepreneurs was still at stake. Under the present circumstances thousands of industrial workers have become jobless as the double-shift in the majority of the industrial units has already been closed.
He said due to lack of cargo arrangements by the PIA, a huge number of the export consignments were still lying unattended at all the dry ports and seaports of the country.
“Our foreign customers have also cancelled major chunk import orders following the US-Afghan war, leaving the Sialkot’s exports target of $650 million unachievable.
The FCCI president and vice-president told the meeting that the establishment of Sialkot international airport would help cater the needs of the business community of Gujranwala division.
The business community suggested that early release of the pending duty drawback and refund claims by the CBR would be helpful in combating financial crisis of the businessmen.
The CBR should revive the duty drawback immediately as it was before the June 30, 2002.
The meeting recommended that all the pending claims for refund of duty drawback be immediately cleared. The rates of duty drawback as on June 30, 2001 be allowed. The levy of Export Development Fund at 0.25 per cent be suspended till the improvement in the present situation. The bank mark-up rate should be charged at 14 per cent.
The meeting also demanded Pakistani commercial counsellors in foreign countries should persuade the foreign customers to continue their business deals with the Pakistani exporters as they are still working and there is no state of war in Pakistan.
Due to high fluctuation in the rate of dollar, the government should fix inter-bank exchange rate which existed prior to September 11, 2001. Due to imposition of ‘war risk surcharge’ by international shipping companies, Pakistan National Shipping Company should carry the export cargo.
Compensation in the shape of special incentives should be given to the exporters to cover their looses incurred due to imposition of war risk surcharge, increase in insurance premium and freight rates. The meeting demanded of the government to formulate trade policy for at least five years so that the exporters/industrialists could concentrate on their future plans accordingly.
