January 26, 2002	Saturday	Ziqa’ad 11, 1422

KARACHI, Jan 25: Minister of state and chairman Export Promotion Bureau, Tariq Ikram has said despite the fact that rice exports are lagging behind the target by 12 per cent, the country has so for earned $220 million.

Speaking at a dinner hosted for the chairman, Rice Exporters Association of Pakistan (REAP), by Dynamic Shipping Agencies on Thursday, the EPB chief said there was an urgent need of maximizing per tonnage value of rice for earning higher foreign exchange.

In order to get better price for rice in the world market, Tariq Ikram said, it was necessary that branded rice be exported with a state-of-the-art packing and good quality.

Agreeing with the REAP chairman’s contention that rice export business is presently under tremendous pressure owing to host of factors, including war risk premium and depressed prices of the produce in the world market, he said a roadmap in the shape of ‘Rice Vision’ be prepared on line with ‘Textile Vision 2005’ which will help exporters focus on right direction.

The EPB chief drew the attention of the participants towards opportunities arising out of reconstruction of Afghanistan and quoted an English proverb, “Millionaires are borne out of reconstruction of nations.”

During first year, he said, the world donors had pledged $1.5 billion in Afghanistan’s reconstruction and in total around $10 to $20 billion would be needed.

Consequently, he said as per need analysis if $50 to $60 was spent per head this means that massive opportunity was awaiting for those who wanted to become ‘millionaires.’

Tariq Ikram said, “our exports to Afghanistan are at around $140 per annum but still we are better placed than other nations to grab Afghanistan’s reconstruction opportunity because of already developed trade relations.

REAP chairman Abdul Rahim Janoo speaking on the occasion said the government should immediately withdraw withholding tax on rice exports.

He said present crisis in rice exports could be resolved if the government took some steps to assist exporters meet the challenges arising in the world market.

Janoo said rice prices in the world market were presently depressed and exporters could not compete with cheap rice from India and Thailand and apprehended that the situation would further deteriorate when Vietnam enters the market in next two months.

He urged upon the government to reduce export refinance mark-up rate to 6 per cent up to July 31, 2002, and also stabilize or freeze exchange rate at least for export of rice for next three months.

Janoo informed the participants that REAP is working on the formation of ‘Rice Board’ which will work in line of Tea Board of Kenya.