May 04, 2007	Friday	Rabi-us-Sani 16, 1428

ISLAMABAD, May 3: Pakistan will have to improve its productivity level, ensure quality and concentrate on value-added products for achieving the desired level of export share in international trade.

This was observed in a high-level meeting chaired by Prime Minister Shaukat Aziz on Thursday to consider various factors responsible for slower than expected growth in the country's exports in the first nine months of the current financial year.

An official announcement issued here said that the ministry of commerce had made a detailed presentation to the prime minister, analysing the factors underlying the export performance during the current financial year.

The meeting was informed that from reports of reputed international consultants it emerged that the incentives regime available to the Pakistani exporters was at par with and in some cases even better than regional competitors.

In terms of various costs, like workers wages, electricity, gas and POL prices, container cost and price of cotton, Pakistan is cheaper as compared to most countries of the region.

Similarly, in industrial tariffs and long-term normal financing for exports, Pakistan is among the cheapest in the region. Pakistan is the only country that provides R&D at the time of export of textile products.

The prime minister observed that the need now was for all stakeholders, including the government, industry, labour and the trading community, to play their role in taking full advantage of opportunities available in export markets.

He emphasised the need for skill development programmes on a war footing to solve the problem of low productivity. Such skill development programmes were already being undertaken by the government, but needed to be intensified in partnership with the private sector.

He said that the government would continue to provide all necessary incentives to the private sector to help and encourage it to enhance the export of value-added products. He said there was an urgent need to find new markets and diversify exports as the regime of quotas has disappeared with globalisation.

Mr Aziz said that the signing of a FTA with China was a landmark development which needs to be leveraged by the private sector as it provides a huge market geographically contiguous to the country.

He said that government was making efforts to concluded FTAs with the US and the European Union.