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LAHORE, April 28: Commerce Minister Humanyun Akhtar Khan on Monday said the government was drawing up an export-led growth package for country’s industrial sector that may be announced some time next month.
Speaking at a press conference here at the Lahore Press Club, Mr Khan said the package to be announced by Prime Minister Mir Zafarullah Khan Jamali aimed at facilitating the local industry to make Pakistani exports competitive in the international markets.
He said the package would be unveiled at a function to be held by the Federation of Pakistan Chambers of Commerce and Industry for honouring exporters.
The proposed package, he said, would take into account various proposals in which his ministry had recommended to bring down the duties on machinery, improve infrastructure, and allow incentives for different sectors.
The minister said the government as a short-term measure would shortly give “bulk tariff” and “off peak hour tariff” schemes for the industry to enable it to control its expense on power bills.
“As medium and long-term measures, oil-based power plants are being put on gas, coal and hydel resources,” he added.
FTA: In answer to a question about ongoing negotiations with Sri Lanka, Bangladesh and Kenya on signing the Free Trade Agreement with them, he said the FTA with Sri Lanka had already been signed in 2002. But, he added, “the work on finalization of two lists of items —- the one containing items having no duty, and the second where there would be no concession in duties —- is underway.” He said it would take one more round of talks between the two states to finalize the two lists.
He said formal talks with Bangladesh and Kenya on the FTA were yet to begin.
EXPORTS: The minister claimed that Pakistan’s exports would cross the target of $10 billion mark despite the recent Iraq crisis and the US-led strikes on that country.
He said the industries ministry had prepared a summary for the federal cabinet on the issue of exporting surplus sugar. He added the cabinet had decided that the Trading Corporation of Pakistan would buy surplus sugar from the mills and export it.
He insisted that the mills needed to be allowed subsidy on the import of sugar because this sector was highly subsidized in the developed countries.
ATT: In answer to a question about the Afghan Transit Trade, the minister said a negative list was prepared in 1996 with 16 items on it. The number of items on this list was later increased to 24 in 2000. Now the government has reduced the number of items on the negative list to 18 from 24. He also gave the details of certain incentives allowed under the ATT.
However, he said, the very fact that production of television sets had increased by 40 per cent during the current fiscal year and a new assembly plant was inaugurated by the prime minister on Sunday was sufficient to dispel the fears of smuggling under the ATT.
EBP RESTRUCTURING: On a question on division of the Export Promotion Bureau in two bodies, Mr Khan said the government had decided to set up a separate company with experts from the private sector on it to effectively market the Pakistani products abroad.
He said export of fertilizers had been suspended and the prime minister had constituted a committee chaired by the industries minister for submitting a report in this regard.
He said Rs600 million had already been allocated for the construction of the proposed Expo Centre in Lahore.
TRADE WITH INDIA: Replying a query about trade with India, he said Pakistan was prepared to talk with India on every issue, including trade and economic relations. He was hopeful that the Indian government was serious in holding talks with Pakistan.
He said he would leave for Brussels in a week where he would talks to the EU trade officials on the issue of imposing anti-dumping duties on Pakistan’s bed linen.
