PESHAWAR, July 25: The new trade policy carries unrealistic export target and lacks a long-term strategy to develop a vibrant manufacturing sector that is under severe pressure from the ‘friendly’ invasion of cheap Chinese goods, says businessmen.

Commenting over the new trade policy announced last week Numan Wazir, the president Industrial Association of Peshawar told Dawn that the government had set an export target of $19.2 billion which was not unachievable under the present circumstances.

He argued that the macro-economic development, which had taken place in the country during last couple of years, had nothing to do with the manufacturing sector mainly because of irrational policies of the government.

Achieving ambitious targets needs industrialisation for production of competitive quality products in today’s age of globalisation, he explained.

He, however, said the policies of the incumbent government were not in favour of its own manufacturing sector. He criticised the free trade agreements signed with China and other countries, adding such pacts did not help in increasing the volume of exports to the trade partner countries rather it had put the local industrial sector at the verge of collapse because the balance of trade of such agreements was always in favour of other countries.

He explained in modern economies the governments used non-tariff barriers (NTBs) to discourage imports and protect domestic manufacturing sectors, whereas in case of Pakistan there was no concept of imposing NTBs on these imports that were causing injuries to the local products.

“This will ultimately promote trading sector and hamper industrialisation in the country,” Wazir remarked.

Liaqat Ahmad Khan, the president Sarhad Chamber of Commerce and Industry (SCCI) also termed the trade policy as unrealistic. He said the NWFP, being located at the doorstep of Afghanistan and Central Asia, has a natural advantage to substantially contribute to the expansion of exports of the country.

But, he said the government had once again disappointed the business community of the province because no special attention was given to exploit the natural advantage of the province for greater economic benefit in the new policy.

Mr Khan lamented that the SCCI had submitted a number of the NWFP-specific proposals for the new trade policy, but no head was paid to them.