LAHORE, April 11: An incentive package for the garment industry would be approved in a meeting of the Economic Coordination Committee of the cabinet on Tuesday, Commerce Minister Humayun Akhtar Khan disclosed here on Monday. Talking to reporters at meet-the-press programme of the Lahore Press Club, he claimed that the garment industry had come under pressure in the emerging world economic scenario.
The commerce ministry has prepared a package of incentives for the industry and send it to the ECC, which in turn formed a committee to look into it. The package will go to the ECC in its Tuesday meeting. The package is “very substantial” and could take the industry out of crisis if approved, he claimed.
Talking about economy of the country, Mr Khan said that industrial growth had touched 13 per cent. “Most of the imports are in the form of raw material which will be processed in the country. It also shows that investors are hopeful of increasing exports. The size of domestic market is fixed; all this raw material will find its way to foreign markets in form of finished goods,” he pointed out.
The minister expressed the hope that exports would cross the $14 billion mark, against the target of $13.7 billion. “Both, exports and imports are increasing, and so is the size of the economy. Imports are largely in the form of raw material and will be beneficial for the economy.”
He said the free trade agreement talks with the United States were underway and he would be meeting the new secretary of state for finance on 14th of this month in this regard. The matter will again be taken up when President Prevez Musharraf will visit the US in future.
EU DUTY ON BEDLINEN: Talking about the imposition of anti-dumping duty by the European Union on Pakistani bedlinen, Mr Khan said the issue had been taken up with the EU and it had agreed to fix a certain quantity that could be taken to Europe with such duties. “That means that, in principle, the EU had conceded weakness of it case. Such duties cannot be used as a protection tool. Though Pakistan is negotiating with the EU on the issue of anti-dumping duties, it reserves the right to invoke the WTO jurisdiction for settling the matter,” he said.
Meanwhile, talking to reporters after inaugurating a seminar on the World Trade Organization here on Monday, the commerce minister said the European Union has offered to exempt a certain quantity of bedlinen from the anti-dumping duty provided Pakistan does not pursue the matter in the WTO.
The government had asked the EU to increase the quota without forgoing its right to refer the matter to the WTO.
Meanwhile, it would hold discussions with the stakeholders for reaching a decision.
The minister said the tax and duty structure would be rationalized in the budget for reducing the cost of doing business. “The issue of petrol price will also be taken up in the budget.” He said the country would meet $13.7 billion export target this year.
APP adds: The commerce minister on Monday said that Pakistan was likely to host G-20 ministerial meet in September this year ahead of December’s crucial WTO ministerial meeting in Hong Kong.
