ISLAMABAD, Feb 24: The ministry of commerce has finalized a proposal to extend increased industrial credit to the businessmen on reduced interest rate.

According to official sources, a new policy is aimed at facilitating businessmen including the exporters and importers. The main thrust of the new policy was to ensure higher industrial growth.

Sources said that one of the major complaints of the businessmen was that they were not getting adequate credit line on relatively less interest rate from banks to set up new industries. “But this time they (businessmen) will get all possible support from the government to have maximum credit from the banks and that too on reduced interest rate,” said a senior official of the ministry of commerce.

He said different kinds of hurdles, faced by the businessmen, were being removed specially issues concerning sales tax and DDR (duty drawback) were being given a lot of attention.

The sources said that the government will extend all fiscal and non-fiscal incentives to utilize the capacity of various industrial houses. Similarly, the government will ensure that industrial surplus was exported and in this behalf cement, sugar and fertilizer would be given preference.

The sources also said that Pakistan will soon be negotiating with China to become its “trade partner” rather than competing it after 2005 when new WTO regime will be enforced.

Under normal circumstances China will be a Pakistan’s tough competitor and could create a lot of problems for the country’s exports. “And we want to avoid that competition by becoming China’s trade partner and this is how we can have some foreign markets for our exports,” another official said.

Meanwhile, it was also learnt that the political government in Pakistan will offer Most Favoured Nation (MFN) status to India, provided New Delhi was ready to start dialogue on political issues.

The sources said as soon as India undertakes the process of dialogue and expresses its willingness to resolve Kashmir issue through peaceful means “we will offer this MFN status to it.”

They agreed that development of trade relations will immensely benefit both India and Pakistan and that they should look for exploring new opportunities rather than pursuing the path of confrontation.

The sources said the government was holding talks with the United States to have increased market access for Pakistani products.