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18 July 2004 Sunday 29 Jamadi-ul-Awwal 1425






NWFP seeks package to boost exports

By Mubarak Zeb Khan


ISLAMABAD, July 17: The NWFP Chief Minister, Mohammad Akram Durrani, said on Saturday that he had asked the federal government to consider a package in the up-coming trade policy to enhance exports from his province.

He told Dawn after meeting Commerce Minister Humayun Akhtar Khan that high input costs in the province due to high freight charges and power tariff for industrial sector had made exportable commodities of the NWFP less competitive in the national and international markets.

He criticized the federal government for withdrawing special facilities from the Gadoon Amazai Industrial Estate, which, he said, had led to the closure of most of the industrial units there, a financial crunch of the investors and huge worker layoffs.

He said he had urged the government to consider a scheme for the revival of these units and demanded that at least import of raw materials for them at concessional rates should be allowed.

He also demanded electricity to NWFP consumers, particularly the industrial sector, at concessional rates.

Mr Durrani said he had asked the commerce minister to announce a relief in the shape of 25 per cent freight subsidy in the up-coming trade policy for 2004-05 on exportable products including marble and granite, furniture and tobacco.

He said the government should also allow inland freight subsidy for exports of marble and granite as done in India, which was Pakistan's main competitor in international market.

Exporters have proposed abolition of the provincial cess on tobacco exports, refund of 20 per cent excise duty on cut tobacco exports, and simplification of procedures for cut tobacco notified by the Central Board of Revenue (CBR) under central excise general order 7 of 2002.

Earlier, the NWFP chief minister and the commerce minister discussed salient features of trade policy 2004-05 concerning NWFP.

Mr Khan said the government was keen to promote export of gems, marble and granite from the NWFP and for this purpose a model quarry would be established in Buner.

He said horticulture had a great potential in the NWFP and his ministry would put in its best efforts to use that potential. A date-processing plant would be established soon in DI Khan.

Mr Khan said the NWFP had very rich pockets for tobacco and the commerce ministry would reorganize the Tobacco Board in consultation with all the stakeholders and the NWFP government in order to increase its export. In this connection, a meeting of the Tobacco Board would be called in the first week of August.

Mr Durrani expressed the hope that the new Trade Policy would boost exports from the NWFP, and indicated fisheries, gems, marble, granite, horticulture and furniture as main export potential areas.




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