ISLAMABAD, Jan 30: The government has decided to abolish the Export Promotion Bureau (EPB) and establish a new agency to enhance exports of the country up to $12 billion by year 2008, well placed sources told Dawn.

Pakistan Export Development Agency (PEDA) has been conceived following the unsatisfactory export performance mainly due to structural problems such as country narrow export base, lack of market diversification, lack of export culture and poor image associated with the Pakistan exporters and their products.

Other problems in the existing structure included lack of strategic focus, accountability and authority, said the sources.

The sources in the economic affairs division (EAD) said that the proposed agency would replace EPB now regulating exports of the country.

The PEDA would be established with the loan of $5 million granted by Asian Development Bank (ADB) under the Small and Medium Enterprise Trade Enhancement facility. The ADB will provide technical assistance to enhance the effectiveness of export promotion.

The sources said that PEDA would initially require 98 staff of highly experienced professionals. To ensure professional skills, all positions would be advertised and selected by a high level selection panel.