KARACHI, July 14: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has asked the government to go for import substitution in the next Trade Policy due in coming week to contain the bulging trade imbalance, discourage luxury goods’ import and take adequate measures to push up exports.

Pakistan’s trade imbalance has gone up from $3 billion four years ago to over $13 billion in the year 2006-07,” President of the FPCCI Sheikh Tanveer Ahmad told a press conference on Saturday while urging the government to ensure that the new trade policy addresses this issue effectively.

He conceded that the main reason for rise in import bill to about $30 billion was increase in the world prices of fuel and edible oil but urged for prudent policies to check import of luxury goods. His advice was that substitution of imported edible oil was possible if government promoted domestic crops of edible oil seeds. He however, did not elaborate as to what goods were classified as luxurious imports and how could these be stopped when Pakistan had signed to observe World Trade Organisation (WTO) rules.

Sheikh Tanveer’s main thrust of the press conference was to demand concessions for the spinning sector for which he asked a 5 per cent Research and Development (R&D) cash rebate, concession in export refinancing and availability of cotton on reasonable rates.

He said that the next trade policy should make a provision for plantation of BT cotton. India, he said, acquired BT cotton technology five years ago and since then has made tremendous progress in cotton output every year and has now enough surplus exportable cotton.

He proposed that the government should ban the export of wet blue leather as it was being used by China and other competitors to outclass Pakistan from the leather garments export market. But he did not say that value-added sector of textiles in Pakistan too faced problems because of dumping of Pakistani yarn in the world market.

The FPCCI chief also pleaded for government’s assistance to private manufacturers in acquisition of popular international brands for various agricultural and industrial products. For this, he said the government should provide long-term loans to trade and industry at low rates of interest.

A 40-page document that contains proposals for next trade policy has been despatched to the government. The business wants uninterrupted supply of gas, electricity and water to industry at reduced rates.