August 11, 2007	Saturday	Rajab 26, 1428

ISLAMABAD, Aug 10: The government has turned down a commerce ministry’s proposal seeking import of vintage and classic cars and sports motorbikes on the grounds that it ‘would not be viewed favourably by the common man’.

Sources said the ministry’s proposal was part of the trade policy but it was the only item in the trade policy proposals that could not get approval from the federal cabinet.

Official record suggested that a recent cabinet meeting was informed that total exports had declined by nine per cent to $17.01 billion in 2006-07 while imports grew by 6.85 per cent to $30.54 billion. However, merchandised exports had registered a slight increase of about 3.4 per cent.

The cabinet was told that reasons for the decline in growth rate of exports during 2006-07 were tough competition in the international markets to textile exports, greater competition from China and India, lack of preparation of Pakistani textiles and apparel industry to compete in the quota-free world, low output of non-basmati rice, capacity constraints in other manufacturing sectors because of obsolete technology and low manpower productivity.

On this, the cabinet had observed that trade with China should be reviewed and immediate steps be taken to enhance trade relations with China in the context of Free Trade Agreement (FTA). The cabinet also directed the ministry of commerce to make aggressive efforts in identification of new markets and introduce new products such as IT products, precious and semi-precious stones and other value-added products. The cabinet ordered the ministry of industries and production to take measures to develop Small and Medium Enterprises (SMEs).

The cabinet also directed that no-objection certificates of Ministry of Narcotics Control should be obtained for import of precursors. Likewise, the cabinet directed that clean cotton programme should be continued and called for the setting up of National Vocational and Technical Education Commission.

The cabinet also discussed a few initiatives to be taken over the next few years for export growth, including emphasis on value-added products, focus on SMEs, exports plans for fruits, vegetables and floriculture, establishment of cold storages for fruits and vegetables in their area of growth as well as cold areas to reduce storage cost on account of power consumption, allowing import of construction machinery by overseas Pakistanis, public-private partnership in different manufacturing areas, provision of protection to football and surgical industry of Sialkot and diversification of export portfolios to new markets.