QUETTA: Balochistan’s agriculture and industry would badly be hit by the implementation of WTO agreement in 2005 when subsidies on electricity and farm sector would be withdrawn, leading businessmen, economists and traders apprehended.

They were of the view that Islamabad was not taking proper steps to face the WTO challenges in 2005, which would create serious problems for our industries rendering them uncompetitive in international markets.

Common man and small traders have no knowledge and awareness about the World Trade Organization and they blamed the government for not organizing seminars, symposiums and workshops for their awareness.

Balochistan’s little economy is based on agriculture and livestock and more than 80 per cent people of this province are earning their livelihood from this sector. Being a backward province the government is providing subsidy and many other incentives to the growers for the development of agriculture sector.

“With the implementation of WTO agreement, the government will be bound to withdraw all subsidies which will have a very negative impact on the agriculture and industrial sectors of the province,” an economist Mohammad Younas observed and added that abolishing of subsidies would raise the power rates and resultantly production cost would go high.

He said this would make our products costly and no one would be interested in buying local goods due to their high prices and ultimately it would lead to closure of units for obvious reasons.

Sardar Mohammad Ali Jogezai, a leading business leaders and former president Balochistan Chamber of Commerce and Industry, was of view that the WTO regime would bring concept of open market economy and create a competitive atmosphere amongst the industries.

Despite the fact that after 2005 there would be an open market and other countries would come to Pakistan with their products, the government had not taken any steps for creating awareness about the WTO among the business community and common man.

He said that our industrialists would have to improve standard of their products and reduce the prices if they want to be remain competitive in open market as China and India were providing the same products on low prices.

“Still we have two years for improving our quality and making the prices reasonable,” Sardar Jogezai added.

Another economist Mohammad Munir was of the view that until Pakistan improves the quality and services standard it would not be able to compete in the open market. He said government should have reduced the electricity rates for all which would help in reducing the cost of production.