December 28, 2002	Saturday	Shawwal 23, 1423

KARACHI, Dec 27: Commerce Minister Humayun Akhtar Khan on Friday said the United States had asked the government to avoid negotiations on enhancing textile quota and come up with other issues in a meeting to be held next month.

“I am not very much optimistic that any positive development will take place on quota issue next month,” he said, while referring his visit to the US next month. “I will raise the issue with the US authorities, but I do not expect any major breakthrough in the quota issue,” he said in a meeting with members of Korangi Association of Trade and Industry (KATI) here.

In case the US authorities skip the quota issue, he said, Pakistan would seek more market access for their products in the US.

He said he could not promise any miracles to be achieved in the meeting but added that he would try his best to gain something next month. Humayun said the situation would become clear after two years when quota will be phased out in 2004. “We will have to ponder now as what Pakistan will gain or lose after elimination of quota,” he added.

He urged the industrialists to gear up their efforts as opening of free trade after two years will be very tough for the local industries to compete.

Referring to zero per cent tariff regime under WTO, he said he would be leaving for Geneva in February for negotiations. “We will have to review and study in details as where would we stand when new WTO rules would come into force,” he added.

Talking on domestic problems, he said investors’ confidence was still very low and Pakistan had not achieved the desired results in growth as compared to India. Poverty level has increased and consumers’ buying powers have also shrunk.

He said the government was looking forward for the double digit growth and generating more employment opportunities.

“We will have to see the problems in the current economic policies and frame new policies aimed at increasing growth rate,” the minister said.

He said exporters and industrialists were facing problems due to higher utility cost, expensive raw materials and higher input cost. He said he would discuss the issue of higher power rates with the Wapda chief and the minister concerned to resolve the issue.

On industrial productivity, he asked the businessmen not to rely on government and make efforts on their own. “It is now time to invest in importing new technologies and also on research and development,” he added.

He urged the industrialists to induct the raw talent in their industries as majority of youth are rushing to foreign countries due to severe brain-drain.

He said the government was determined to give political cover to its economic policies and ensure their proper implementation.

He said the Export-Import Bank would start functioning as both the commerce and industries ministries were actively pursuing it. The setting up of bank was suggested in the trade policy 2002-03 but it could not be implemented even after six months.

Humayun said the experience of setting up of export processing zones also proved ineffective. However, he said he was in favour of establishing free trade zones in the country.

Patron-in-chief S.M. Munir urged the industrialists to invest in setting up of industries instead of stock markets and real estates.

Chairman, KATI, S.M. Naseer, pointed out main problems of the country according to which around 40 per cent of the population are living below poverty line, around 50 million people of age over 18 cannot read, 60 million people are deprived of pure water, 50 million people are not getting required health facilities, 80 per cent of the population is earning two dollars a day, 75pc of women are illiterate and 80 million people are also illiterate.