July 19, 2007	Thursday	Rajab 03, 1428

KARACHI, July 18: Industrialists and businessmen offered a mixed reaction over the new trade policy 2007-08. Some termed the measures taken for the textile and spinning sectors as inadequate while others viewed the policy tackling long-term issues rather than addressing short-term problems.

The industry people are also divided over the achievement of export target of $19.2 billion for the current fiscal at a time when the country is in grip of serious political uncertainty after Lal Masjid bloodshed. Many said foreign buyers had already started offering excuse for visiting Pakistan after a series of terrorist incidents that rocked the capital and other parts of the country.

President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Tanvir Ahmad Shaikh said that the FPCCI’s proposals for trade policy had been favourably accepted by the government. He said that though it was an export-oriented policy it still lacked incentives on textile and spinning sectors, which should have been more this year.

He recalled that the textile spinning sector had invested $6 billion when mark up on loans was three to five per cent. He added that how new investments would be made when the mark up rate was hovering between 12-14 per cent.

He agreed that the government had taken the right decision in fixing the ambitious export target. But unfortunately there is a need for providing an enabling environment to achieve the target.

Tanvir said that the government should have come out with an incentive package for textile sector keeping in view the package announced by the Indian government for its export sector. Exporters need a level-playing field to remain competitive in world markets. He urged the government to allow import of all kind of cotton through land routes.

Chairman Korangi Association of Trade and Industry (Kati) Masood Naqi said that the trade policy speech by the commerce minister was studded with measures like marketing strategies, social compliance and skill development rather than touching the problems of the ailing textile sector. Besides, the policy also lacked any concrete measures to arrest the cost of production.

He said the export target of $19.2 billion for 2007-2008 was unlikely to be achieved as foreign buyers have already become alarmed over the instability in the country after May 12 incident followed by Lal Masjid bloody event and suicide attacks in the capital.

President Karachi Chamber of Commerce and Industry (KCCI), Majyd Aziz said that overall the trade policy was not bad and it could be termed as a functional policy aimed at achieving long-term goals instead of tackling short-term issues.

He, however, said that the export target would be achieved but after a hectic effort as export of rice is at saturation point and the people are talking about its import, while textile and leather sectors are also trying to sustain in tough foreign markets.

“I think the trade deficit will still range between $13-14 billion in 2007-2008 as import bill is expected to hover between $33 to 34 billion,” the KCCI president said.

Chairman Pakistan Bedwear Exporters Association (PBEA) Shabir Ahmad termed the trade policy as satisfactory, saying that the government had mainly focused on facilitating the trade and industry.

Shabir said that despite a good policy the export target for the current year was unlikely to be achieved. He added in case the State Bank offered low mark up on export refinance then the target can be achieved to some extent.

Founder chairman Pakistan Leather Garments Manufacturers and Exporters Association (Plgmea) Fawad Ejaz said that the government had virtually ignored the association’s proposals in the trade policy.

The new trade policy offers nothing new. It is actually a fine tuning of last two years’ trade policies. He suggested that the government should announce the trade policy for at least three years from next year because initiatives announced in the policy took time for implementation.

However, he said that the $19.2 billion export target is not ambitious and it could be achieved.