ISLAMABAD, March 6: As part of a contingency plan, Pakistan has lined up alternative air and shipping routes to ensure uninterrupted export of its products if war breaks out in the Gulf.

“We have taken measures to ensure alternative air-routes and shipping routes because our exports could be affected in case the war in the Gulf prolonged,” Tariq Ikram, the minister of state and chairman of export promotion bureau told Dawn here on Thursday.

He said the war would not have any major impact on Pakistani exports but war risk insurance could go up if it prolonged. He, however, ruled out setting up a special fund to guarantee the shipment of exports if war risk insurance increased as had been done by Sri Lanka.

He said the government had also considered the idea of setting up warehouses abroad for its exports but was not found feasible when discussed with the exporters.

He said the government had asked the exporters to bring forward their export plans and execute their orders, which were to be met after 15-30 days, now because there could be “some disruption for sometime”.

He said Pakistan would rather get a better change to enhance its exports primarily of food items and medicines. He said that Pakistan has good share of Iraqi market in batteries, wooden doors, construction material, pharmaceutical, textile, wheat, surgical goods, stationary and ceramic products. He said, as normalcy returned to Iraq, Pakistan’s exports would rather flourish further.

To a question, Tariq said that Pakistan has drafted a trade plan for China on the basis of which a study would be conducted to play a role as collaborator rather than a competitor when Chinese market expanded as a result of its joining the WTO.

He believed that China’s accession to the WTO would have both positive and negative impacts. Positive in the sense that when new market would open, Pakistan exports would flourish, besides collaboration in the shape of investment and improvement in exports, and negative in the sense that China’s productivity could improve through Foreign Direct Investment (FDI) which could make them more competitive.

“It is our wish to establish partnership with China because it is global market and leader in textile business,” Ikram maintained. Asked what measures Pakistan has taken to counter Iran-India cartel in Afghanistan, he said, it was not a cartel, but Iran, India and Turkey were making efforts to increase their market shares and Pakistan was also making efforts on the same lines as our products have already captured 50 to 82 per cent market through food products, pharmaceuticals, construction material and Nestle’s water.

He said: “We are arranging exhibitions first in Peshawar and then in Afghanistan that would definitely help boost exports,” Tariq added.

He avoided replying a question regarding reduction in the Afghan Transit Trade Agreement (ATTA).

Answering a question, he said that the government was considering to create body in the private sector for aggressive planning and policy making so that EPB could implement policies made by that body.

The new entity would be assigned to develop new markets, plan exhibitions, advise EPB on policy development and regulatory work, he said, adding that the government did not intend to wind up EPB, but to make it efficient.

“We are clearing concepts in the first phase while during second phase planning will start after two months,” he said, adding that implementation on this project would start some time later.