LAHORE, July 25: The industry needs to enhance its productivity to become competitive in the world markets, says Export Promotion Bureau Chairman Tariq Ikram.
“No doubt, a cut in the cost of doing business is very important. But the demand for a decrease in utility prices alone will not help the industry become competitive vis-à-vis its competitors,” he told businessmen while speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Tuesday. He also gave a presentation on the Trade Development Authority of Pakistan (TDAP), the successor of the Export Promotion Bureau.
Speaking about the export target for the current fiscal year, he said it was not difficult to achieve the target of $18.6 billion, as it had been set after taking into consideration all the ground realities and the performance over the last three years.
He said this was beyond any doubt that the open market mechanism was always good for an economy. “But for the country like Pakistan there should be targeted interventions.”
He said there was a need to have sectoral plans to identify the opportunities and challenges in any particular sector and strategise a policy for quantum jump in exports.
Talking about the significance of social and environmental compliance issue in the post-WTO era, the EPB chairman said the government was endeavouring to educate the business community about the need of complying international standards. “Any complacency on the part of the exporters in this regard could be detrimental for the country’s exports.” On government efforts to improve the supply and value chain in the textile sector, he said a `cotton vision’ was being finalised to increase the production and quality of fibre in the country. He added the textile vision was also being updated in line with the changing needs.
Speaking on the occasion, LCCI senior vice-president Abdul Basit invited the attention of the EPB chairman towards higher prices of inputs that had adversely affected agriculture and manufacturing sectors. He said the competitive edge of Pakistani products had been eroded by the frequent increases in prices of energy. Ironically, the prices of indigenously produced gas had also been linked to the international oil prices.
He said Pakistan needed an industrial, agricultural and energy policy that could ensure adequate supplies of required inputs at economical costs. He also called for a need to conclude free trade agreements as soon as possible.
He said the European Union was a quality and environment conscious market where buyers dominated and dictated their terms through legislative and non-legislative forces. “The companies want suppliers to follow the environmental laws and workers’ health and safety issues very seriously. But in the trade policy and budget for 2006-07, the government has totally ignored these issues, which can affect exports.”
He said the anti-dumping duty of 5.8 per cent imposed by the EU on the Pakistani exports was also hitting exports to the EU. He said in order to diversify export markets the government should announce incentives to exporters of non-traditional products in non-traditional markets. “Subsidies in energy bills could be a good beginning.”
