KARACHI, Jan 31: Business leaders have urged the government to reduce the export refinance and mark-up rates and utilities charges, which could help bring cost of doing business at part with regional countries. They felt that the fast deteriorating industrial and trade environment has created doubts in the minds of foreign buyers about “our ability to fulfil export commitments.”

These demands were made by business leaders at a luncheon meeting at Korangi Association of Trade and Industry (Kati) on Thursday.

Speaking on the occasion Chairman Kati Shaikh Fazl-e-Jalil said that the December 27 riots and looting in the aftermath of Benazir Bhutto’s killing had shaken the confidence of trade and industry as they suffered unprecedented losses and damages.

He further said that the government had sought complete information about industrial and business losses and damages but so far there is no word about payment of compensation on such claims. Mr Jalil urged the government to take immediate decision in this regard as it will help built confidence of the business community and would also generate jobs.

Initially, the government took keen interest in issues relating to security of industrial areas and even sought suggestions from trade bodies but so far there has been no official action or plan to avert such ugly incidents in future.

Shaikh Manzar Alam, chairman press and media standing committee of Kati observed that the media has a great role in image building of nations and said that what was being projected by Indian media about all the goodness and prosperity of their nation was totally false and one could easily verify it on visit to India.

He urged upon the journalists to work on improving country’s image, which was badly affecting exports and because of this the trade gap was rising every month and today it stood at around $8 billion.

He pointed out that how one could expect the industry to stay viable when it was initially allowed to import plant and machinery worth over $1 billion at lower mark-up and was also given cheaper export refinance. But later mark up and refinance rates were raised, which totally destroyed financial working of the industry and made it uncompetitive in the world market.

He said around 70 per cent of our exports are textiles compared to 30 per cent of India and 7 per cent of China, therefore, “We have to suffer more in case our textile exports decline.