July 23, 2002	Tuesday	Jamadi-ul-Awwal 12,1423

KARACHI, July 22: Exporters have been disappointed with the Trade Policy 2002-03, announced by Commerce Minister Abdul Razak Dawood on Monday. There was a general view that it has carried no incentive to achieve the ambitious exports target of $10.4 billion.

While unfolding the Trade Policy over radio and TV, the commerce minister said that there would be a trade deficit of $0.7 billion on a projection of imports at $11.1 billion and exports at $10.4 billion.

However, exporters are unanimous in their views that there is hardly any incentive that could help boost exports, and the minister has even failed to remove export development surcharge of 0.25 per cent, which directly falls under his ministry.

Above all, the minister himself has admitted that exports in Pakistan are not zero rated and income tax of one per cent has to be paid by exporters, whereas in neighbouring countries there is no tax on exports.

Pakistan Bedwear Exporters Association (PBEA) chairman Shabir Ahmed said that export surcharge, which had been primarily collected for establishing technical institutes, should have been withdrawn as all such institutes had now been set up.

Similarly, he said the minister had admitted that Pakistan annually held 51 international trade fairs without getting due results. The PBEA chief questions as to why exporters’ money is being wasted on such activities.

Mr Shabir was highly critical for not allowing import of second-hand boilers, leaving the industry to pay high cost for locally manufactured boilers.

Furthermore, he said there had been strong demand from the general public to allow import of reconditioned cars, but the minister even did not heed to this demand just to protect a few car assemblers, who had formed a cartel to fleece the people.

There is no upward revision in the duty drawback rates despite frequent rise in power tariff, which is making the export industry uncompetitive in the world market, he added.

Every year Trade Policy fixes an ambitious export target but does not give incentive to boost exports, and resultantly the target is revised downward, Mr Shabir maintained.

Pakistan Leather garments Manufacturers & Exporters Association (PLGMEA) chairman Fawad Ijaz Khan termed the new Trade Policy all theory and no practical.

He said a demand had been put by PLGMEA for imposing 20 per cent duty on export of finished and semi-finished leather to ensure the availability of raw material for the garment industry.