July 20, 2003	Sunday	Jumadi-ul-Awwal 19, 1424

KARACHI, July 19: Many businessmen are optimistic about $12.10 billion export target fixed for 2003-2004 in the new trade policy in the light of government’s focus towards free trade agreements with various countries and search for new market access.

However some industrialists offer reservation by terming it “quite high and ambitious.”

They also said that if the decisions taken in the new 2003- 2004 trade policy, as announced by the federal commerce minister, Humayun Akhtar Khan on Saturday, were fully implemented, exports are set to go beyond $12.10 billion in 2003-2004.

Chairman, Banking, Credit and Finance Committee of the FPCCI, Mirza Ikhtiar Baig said that the trade policy was generally focussed on the WTO challenges after phasing out of quotas and duties in 2005.

He said the setting up of upgradation fund of Rs3.74 billion for financing the initiatives for technological upgradation, social, environmental and security compliance, setting up of combined effluent and waste water treatment plants, hiring consultants, professional marketing companies abroad, upgrading industrial clusters, warehousing Pakistani products abroad and agriculture export processing zones would definitely help in increasing the exports.

He said new power rates formula would help in decreasing the cost of production.

The president, Karachi Chamber of Commerce and Industry (KCCI), Mian Nasser Hyatt Maggo said that for the first time any government had made the trade policy keeping in view the stiff challenges of the WTO regime. He said the government’s emphasis on regional trade agreement would increase trade volume among the countries.

“The decisions being taken by the government under the WTO perception are expected to help in achieving the export target of over $12 billion,” he said.

Ex-chairman Site Association of Industry, Zubair Motiwalla offered a different view, saying that the export target of $12.10 billion is quite high and ambitious.

“Policy is overall good, forward looking and growth-oriented but the export target is quite high,” he said.

There is one caution in the policy relating to the true and proper implementation of the trade policy which the business community had been witnessed on various occasions that non- implementation of policies had created problems in achieving the export target, Zubair said.

He said the government has not focussed on the infrastructure developments and Karachi has been the worst victim of it.

Vice President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Haroon Rasheed termed the policy as over ambitious and less pragmatic. “It can be termed as export oriented and innovative in view of various steps taken in promotion of cotton related export items,” he added.

He expressed his doubt over the full implementation. “In a short span of one year, it looks impossible to implement the policy with full force,” he said urging the government to indicate a time frame for implementation of various policy decisions. He recalled the decision of setting up warehouses abroad two years back but could not be implemented.

He was not happy over too much discretionary powers vested in the Export Promotion Bureau (EPB) in the new trade policy. “We want full representation of the business community in selection of warehouses abroad,” Haroon said calling for consultation of FPCCI in selection of retail space in high profile markets worldwide.

On positive side, he said the trade policy had amply covered all the sectors particularly cotton related items. He welcomed the steps of setting up two special export processing zones in Karachi and Punjab followed by garment cities in Karachi, Lahore and Faisalabad and setting up agriculture export processing zone.

Convener Union of Small and Medium Enterprises, Zulfiqar Thaver pointed out that the trade policy had ignored the issue of balancing, modernization and replacement. He said import of machinery under BMR should be duty-free. He said import of packaging material should be duty-free to encourage improvement in packing and value-addition as exporters were loosing business due to poor packing material. He said freight subsidy should be expanded to cover more items and more countries.