LAHORE, Nov 3: Although the shipping and air lines have slashed the war risk insurance surcharge by 20 per cent on cargo to and from Pakistan on the recommendations of a team of international underwriters from Lloyd’s, the EPB is not satisfied with the cut.

“We are not satisfied with this reduction. If the war risk surcharge is not decreased substantially, the government would consider to give sovereign guarantee to save exporters from the losses suffered on this score,” Export Promotion Bureau vice- chairman Ejaz Qureishi told the businessmen at the Lahore Chamber of Commerce and Industry here on Saturday.

He said the government had not discontinued its efforts to get the surcharge “eliminated or substantially reduced”. He said either the surcharge should be removed from Pakistan and other regional states or levied on the US and the European countries as well because they were faced with a bigger threat of terrorism.

He said the EPB had also hired the services of a consultant to make the Pakistan Export Finance Guarantee Agency regulations and procedures “export-friendly” so that exporters could easily avail of the scheme launched recently by the Asian Development Bank.

He said the government would try to pass on the fiscal as well as other benefits, it hopes it would gain in the wake of supporting the global war against terrorism, to the exporters, which include cut in cost of utilities or subsidies.

Qureishi was hopeful that the “exporters would be able to take maximum advantage of the trade concessions secured from the EU as well as other business opportunities should we succeed in keeping our house in order.”

He said the present situation had posed many challenges to the business in Pakistan, which demanded that “both the government and the private sector should work hand in hand to overcome them.” He said Pakistan’s embassies abroad had been activated to pursue the buyers not to cancel their orders.

Qureishi said the EPB was setting up separate export board for leather, rice, gem and jewellry and engineering to promote their exports from the country. He said the boards would see the supply and marketing sides of these sectors.