KARACHI, July 22: Minister for Commerce Humayun Akhtar Khan on Tuesday said that trade with India could only be possible if a sustainable political talks take place between the two countries.

He said prior to opening up of normal trade relations it was necessary that a serious and meaningful dialogue should be initiated on all political issues confronting the two countries.

Addressing a press conference at the Export Promotion Bureau (EPB) head office he said that the new Trade Policy had given a direction and also pin-pointed issues for achieving higher export target set at $12.1 billion.

The main objective of the new policy, he said was the upgradation of industrial technology and laying cluster of industries across the country.

Initially, he said 12 industrial estates had been identified for setting up combined effluent and waste water treatment plants which were going to be financed through banks and private sector contribution. The minister said such schemes could also be funded out of Rs3.74 billion upgradation fund established by the government and would be run as corporate entities with active participation of private sector but run by professionals.

Responding to a question, he said, the government could also participate through equity in such mega scheme which was now necessary to meet the environmental conditions as laid down by the WTO.

Similarly, he said, warehousing schemes could also be launched and services of professionals would be hired in a country where this facility would be required. There would be no direct involvement of any government agency except for the EPB that would work as a guiding force.

Humayun Akhtar Khan further said that the new Trade Policy had given a lot of cover to the Small and Medium Enterprises (SMEs), and State Bank Prudential Regulation for SMEs would be revised so that these units could be funded at cheaper rate which could be based on six month Treasury Bill rate plus 2 per cent interest.

He said that Duty and Tax Remission for Export (DTRE) rules would be further improved to suit SMEs and they would have a separate warehousing scheme that would work as a common warehousing facility.

In addition to that, he said, there were already Pakistan Export Guarantee Corporation and SME Bank small enterprises.

He said under the on-going EPB’s reforms which were funded by Asian Development Bank (ADB) the marketing section would be separated from the Bureau and would be converted into independent corporation having members from private sector on its board.

The minister stressed upon the need for creating awareness among the business community with regard to WTO and said that the Export Promotion Bureau had been given this

task so that such perceptions that by the year 2005 there would be no tariffs could be corrected.

Referring to Agriculture Processing Zones, the minister said that provincial government would be allowed to select a suitable place for such ventures and there would be no binding from the federal government on this matter.

Responding to a question, the minister of state and chairman EPB Tariq Ikram said that the Karachi Expo Centre was giving world class facilities which cost at around Rs0.6 million per day. However, he said if Small and Medium Enterprises were looking for such facility the Export Promotion Bureau would provide the Expo centre at a subsidized rates which would be funded from other sources.

He said that the Export Promotion Bureau in collaboration with all the trade bodies of the country was holding National Exhibition and would also allow individual body to hold such fairs which were now necessary under emerging conditions.