KARACHI, March 28: Minister of Commerce Humayun Akhtar Khan said on Tuesday that exports were expected to cross over $18 billion this fiscal and foreign direct investment (FDI) would also touch an all-time record level of around $3 billion.

He said that up to end February the FDI stood at $2 billion and hoped that if the current rate of flow was sustained by the close of current fiscal on June 30, it would rise to $3 billion.

Similarly, the minister said that the current growth rate in exports strongly indicated that the country would manage to cross over $18 billion in exports by the close of current fiscal.

The minister observed that the exports hovered below $8 billion for a couple of decades and stood at $7.8 billion in 1999, but for the last couple of years there had been a sustained growth.

The minister, who addressed a press conference for giving a curtain raiser on Expo Pakistan 2006, being held from March 29 to April 2 at the Karachi Expo Centre, said that some 1,000 buyers from 57 countries were expected to visit the mega event.

He further said that the event would be made an annual feature and hoped that the second year event would be better managed and mistakes made at the Expo 2005, will not be repeated.

Responding to a question Humayun Akhtar said that less than 25 per cent of the expected foreign visitors will be the state guests.

He said that due to the addition of two more halls at the Expo centre a larger display space was available, which had been fully booked by over 350 exhibitors from all over the country. He further said that much of the funding for the mega show would come from rent of the display stalls and from the organizations sponsoring the event.

The minister appreciated the provincial and city governments in extending their full support to the mega event aimed at projecting the soft image of the country in general and the city of Karachi in, particular. He lauded the contribution of Sindh Industries Minister Adil Siddiqui for the event.

Another objective of the event, he said, was to display all products manufactured in the country and also invite the leading buyers of the world to give them an opportunity to have a first hand information and knowledge of the friendly investment environment prevailing in the country.

When the minister’s attention was drawn towards dumping of cheap Chinese-made products in the domestic market, he said that China was also a WTO member and any trade dispute could be taken to the Dispute Settlement Tribunal (DST), in case,” we see that the products are being dumped at less than their cost and subsidy is being given on certain products. Countervailing duties could be imposed if it is proved that the injury is being caused to domestic industry due to dumping of goods.”

He further said that the National Tariff Commission (NTC) had imposed anti-dumping duties on several products originating from many countries. On a point, that the footwear industry had been wiped out due to cheap Chinese products, the minister said that this industry primarily, belonged to cottage industry and it was not documented, therefore, officially their case could not be taken up.

However, he said that a special cell had been set up to assist such sectors which could not plead their case with the NTC on such issues and hoped that the footwear industry would benefit from this cell.

The minister rejected the idea that India was attracting more foreign investment and said that it was a big country and had also undergone drastic reforms.

Mr Khan said that reduction in rates of anti-dumping on bed linen would officially come into effect by end of April, and Pakistan had two months to make any decision in this regard.

EPB Chairman Tariq Ikram, responding to a question, said that the Research and Development (R&D) rebate at the rate of 6 per cent, being given to the exporters of garments and knitwear, had a positive impact on their exports and it would expire by the end of current fiscal. However, a summery had been sent to the ECC for a review of the case.

Similarly, he said that the draft for the creation of Trade Development Authority of Pakistan (TDAP) was ready and would be put before the cabinet next month.

The minister agreed that some irritants existed between Pakistan and the USA with regard to the Bilateral Investment Treaty (BIT), but their details could not be disclosed as both the sides had agreed not to involve media in this matter.

Humayun Akhtar also defended the high sugar prices and said it was primarily owing to higher prices prevalent in the world market where, Brazil being a major player, had diverted much of its sugar production towards fuel manufacturing because of the rising POL prices.

Another factor, he said, was shortage in the domestic sugar production which might not be more than 2.5 million this year, whereas the sugar consumption in the country stood at around 3.5 million tons.

More than 20 furniture companies will display a wide range of furniture items. The companies hailing from Peshawar, Lahore, and Karachi have set up their stalls in the newly built Hall No 5 of the Expo Centre and will be displaying home, office and kitchen furniture products, says a press release issued by All Pakistan Furniture Exporters Association.