KARACHI, Sept 10: As the government is in the process of preparing a draft for Industrial Policy 2005-2015 -- many stakeholders think that a lot of issues need to be addressed before its announcement in order to achieve goals and objectives and to meet future challenges of the WTO.

Rising cost of doing business, delay in sales tax and income tax refunds, higher utility charges, etc., are some of the issues that should be resolved on priority basis before the announcement of the policy.

In this regard, officials of the Expert Advisory Cell and various government departments held a meeting with leading exporters and producers of value-added products on September 2 in Karachi to solicit views of the stakeholders.

However, the government officials had not presented anything in black and white before the exporters and manufacturers, and the meeting rather restricted to a verbal discussion.

The government machinery involved in the preparation of the new policy claimed that the policy would provide a roadmap for industrialization in the country and help develop local and technical manpower resources through skill upgradation to meet challenges of the WTO regime.

Chairman of the All Pakistan Textile Mills Association (Sindh-Balochistan Zone), Mushtaq Vohra said the government officials in the meeting had not provided any policy draft document to the stakeholders. "It is difficult to comment whether the new policy is good or bad when there is nothing in black and white in hand."

He said the government should thoroughly discuss the new policy with the stakeholders before finalising it. Besides, the government should also ensure its proper implementation.

He said at present the exporters and manufacturers were battling with many domestic issues like rising cost of doing business, sales tax and income tax refunds problems, higher utility charges, etc., at a time when the quota-free environment was due to get underway.

At one moment, Mr Vohra plainly said there was no need for a new industrial policy because there was no restriction on anybody for setting up a unit and banks' loan were also available. "If the government is making plans for a new policy - then it should concentrate on a long-term industrial policy and ensure its proper implementation."

Chairman, taxation committee of the Towel Manufacturers Association, M. Muzamil Hussain, said the new industrial policy was aimed at removing bottlenecks being faced by the exporters, enhancing exports, meeting challenges of the WTO, grooming technical labour force, adopting modern manufacturing techniques and opening more job avenues for the youth.

However, he said the government officials had not given any written paper to the stakeholders as they were here in Karachi, initially taking feedback before finalizing the policy. He said some more meetings were likely to be held before final announcement of the industrial policy.

Mr Hussain said he had sent some proposals to the government to look into the current situation being faced by the exporters and industries. "The government has been asked to upgrade infrastructure on a war footing. Indirect exporters should be allowed to generate power, particularly on gas and the government should focus and evolve policy to promote solar electricity."

He said banks should be asked to provide export financing facilities to both direct and indirect exporters at par with KIBOR. Prices of raw materials (lint and yarn in the case of textiles) should be kept in check.

Giving details of some major irritants, Mr Hussain said the present system of sales tax refund should be replaced with no-tax-no-refund regime for both the direct and indirect exporters.

"Mushroom government departments/agencies should be stopped immediately as has been done by the Punjab government. Regular and uninterrupted power supplies should be ensured."