KARACHI, Dec 27: Commerce Minister Humayun Akhtar Khan on Friday said that the restructuring plan of Export Promotion Bureau (EPB) is under way with assistance of Asian Development Bank (ADB) which is initially extending $3 million as a study loan for this purpose.

Talking to a group of economic and commerce reporters at a local hotel the minister spelled out some of the steps being taken to face the challenges arising in the post quota regime starting from January 1, 2005.

Humayun said among other measures the EPB has been asked to hire the services of foreign experts for collecting correct information with regard to opportunities and products in the US market.

He said that these strategic planners are being inducted to guide the EPB about products and markets and simultaneously the restructuring of the bureau will be carried out on top priority to make it effective and presentable to the outside world.

“Once the quotas are removed we should know the correct position of world markets, particularly the US and EU markets and for which the services of product specialization experts will be hired,” he stressed.

He further said that China has already moved on these lines and despite being our strategic partner and a friend but still remains our competitor in the world markets. In order to consult our Chinese friends on WTO matters that will emerge in 2005, the minister disclosed that he will be visiting China in the near future.

Spelling out negative factors faced by exporters the minister said that appreciation in the rupee value and recession in the world markets are the main tumbling blocks. However, the saving factor, the minister said, is increase in export of textiles.

The rise in textile exports, he said, is owing to enhancement in quota and duty concessions given by the European Union (EU) which enabled our exports to become competitive over other countries’ products.

Above all, he said around $1.4 billion investment during past three years by the textile industry in its BMR plan have also assisted in improving the quality of their products.

However, Humayun said that in order to make our products competitive in the world markets it was necessary that the government should ensure that input cost be at par with the world prices, including that of raw material, capital cost and of infrastructure. The minister said that he will be holding a meeting with the ministry of water and power to look into matters relating to power tariffs.

The minister agreed with a questioner that without going into value addition in all category of export goods the foreign exchange earning could not increase any further. The volume of exports had been rising year after year but the foreign exchange earning continue to remain around $9 billion.

For value addition of products, Humayun said it was necessary that up-to-date technology be applied and most modern plant and machinery should be installed. However, he said it was equally important that human resource should also be developed.

The investment policy of 1997, tailored by him allowed zero rate import of plant and machinery and also gave accelerated allowance of depreciation of up to 90 per cent in the first year, he said but the same has been changed to 5 per cent duty and allows 50 per cent depreciation allowance.

The previous concessions allowed by the government were a sort of tax holiday for the industry and it gave impetus to the investment particularly in the textile industry, he added. Though we keep talking about policy consistency but this is how we fail to maintain it.

He said during his coming visit to textile trade fair in Frankfurt he will also hold talks with his counterpart in EU on January 9, 2003.

However, he said we should get use to anti-dumping tools and also learn how to use them for our advantage.

Humayun said that National Tariff Commission (NTC) is working on these lines and suggested that we should develop our own expertise for defending out interests internationally. The minister disclosed that EPB will assist in funding the legal battle on the anti-dumping duties.

Responding to another question he said that the European Union understands that aircraft decision taken by Islamabad is purely based on technical merits and there was no other factor in making such a decision by our national airlines.

Without directly responding to a question about the differences in the past between the ministries of finance and commerce over policy matters the minister said, “economic team of this government will be able to resolve all outstanding issues and will come out with new policy initiation after mutual consultation.”

About the changes in the top slots of the Export Promotion Bureau, the minister was short in spelling out new names as he tried to avoid direct answer to a question raised by a newsman.