Facing trade challenges
THE new trade policy announced on Saturday seeks to provide generous institutional support to exporters and, at the same time, further liberalizes imports in order to boost foreign trade over the next 12 months. In value terms the policy aims at raising export earnings to a little over 12 billion dollars during the current year against an import bill of 12.8 billion dollars, in the process curtailing the trade deficit for 2003-04 to around 700 million dollars. These targets look practical against the backdrop of the achievements recorded in foreign trade last year. More so, because the assumptions on which these targets are based seem to be realistic. The exchange rate would hopefully remain stable in view of the adequate reserves in foreign exchange. With so much of liquidity with the banks and interest rates falling, there would, hopefully, be no shortage of finances for export. Finally, with most of the rich markets set on way to gradual recovery and the domestic economic environment hopefully remaining stable over the medium term, one can expect a marked growth in foreign trade during the year.
Appropriately, the new policy has proposed the creation of a fund which would be managed on the basis of public-private sector partnership to finance initiatives for technological upgradation, social, environmental and security compliance, setting up of combined effluent and waste water treatment plants, hiring consultants, professional marketing companies abroad, upgrading industrial clusters, warehousing Pakistani products abroad, agriculture export processing zones, special export zones, garment cities and brand acquisition. It has also been proposed to facilitate supply of power to exporters at more economical tariffs to improve their competitive status in the world markets.
The overall policy is a continuation of the liberal foreign trade regime which Pakistan has been practising over the last one and a half decade. It is gradually being shaped to fit the demands of the World Trade Organization (WTO). The current year’s policy, however, seems designed to meet the immediate challenges Pakistan will be facing with the complete liberalization of world textile trade by January 2005. Pakistani textile exports, therefore, have just one year to gear up to compete in a quota-free world market. It is the value addition and quality that would count now. It is perhaps with this in mind that the authors of the new policy have decided to offer much institutional assistance to our exporters over the next 12 months to improve their capacities to produce quality value-added products. Some of these steps should have been taken much earlier considering the changes and reorientation needed in the export industry to get attuned to the demands of the emerging world market. Indeed, considering the time taken for such measures to start yielding results, it would be a miracle if we could achieve the objectives of the policy before January 2005. There are other measures as well, which need to be put in place in the next 12 months to be able to sell our products without hitch in the world markets. The first is an intellectual property and patent rights law. There is now a free-for-all in this country on this score. So far, we have not been punished by the rich countries for violating this right. This leniency is not going to last long. They are going to put the screws on us soon. The other matter is drawing up an effective anti-dumping law to protect the rights of our own producers. One hopes that the two legislations would be taken in hand soon by the government.
New Haj policy
THE Haj policy for the coming year contains some welcome changes, particularly in terms of numbers and expenses. With increasing rush for pilgrimage every year, the problems of management for the Saudi government and the participating countries are becoming daunting. The solution lies in a well-coordinated arrangement based on understanding and a spirit of accommodation in keeping with the spirit of the holy occasion. Pakistan’s decision to reduce the total number of pilgrims by ten thousand against last year’s 140,000 will prove helpful in facilitating the overall performance and in improving the arrangements in specific terms. The grievances and complaints regarding last year’s Haj arrangements have to be kept in mind in deciding this for the future. While a degree of inconveniences in a vast and composite process such as this is understandable and should be borne with an equanimity of mind and spirit, serious lapses and hassles for the pilgrims ought to be avoided at all costs. Those entrusted with this task should be fully conscious of their role and responsibility.
Emergencies apart, advance planning can avoid many problems. The issuance of Special Haj passports is a move in the right direction as it will make for a streamlined process. Similarly, the reduction in Haj expenses and service charges, though nominal, is a positive move coupled with alternatives in terms of mode of payment. But the main problem that causes a lot of hassles for pilgrims is transport and accommodation. PIA must be instructed to ensure proper travel arrangements back and forth. Uncertainty regarding these cause much trouble to passengers, particularly in terms of return flights and dates. Regarding road transport and immigration requirements the Saudi government should be requested to provide special facilities.
Accommodation is of course the most vital aspect that must be duly addressed. Flouted promises and last-minute let-downs are among the most worrisome problems for pilgrims. Ensuring complete reliability of arrangements should be the top priority of the government as agents and their cohorts at both ends often make false claims and promises. Sending a mission of ministers or parliamentarians to visit the sites to inspect the location and attendant arrangements is a good move. Their report in time and suggestions for changes and improvements can go a long way in making the pilgrims’ stay reasonably comfortable and make the performance of Haj a hassle-free experience.
Why the youth hostel?
IT IS regrettable that the Frontier Corps (FC) forcibly occupied a youth hostel in Quetta to house its men. The hostel’s management did all it could to resist the demands of the FC but in utter disregard the latter forced its way in. The Pakistan Youth Hostels Association (PYHA), a non-governmental charitable trust which runs the institution, has said in a statement that its representative spoke to the Quetta Nazim and senior army officials but no one came forward to help. The attitude of the city government was particularly strange: instead of asking the FC to look at other housing options, it was said to be pressing the PYHA to let the paramilitary force take over the hostel. By occupying the hostel, the Frontier Corps deprives students visiting Quetta of an affordable and clean place to stay. Given the exorbitant prices that most hotels charge in Pakistan, youth hostels fill a much-needed gap by meeting the accommodation needs of students who often travel on modest budgets. Besides, members of the teaching fraternity on brief visits often use them.
The paramilitary force’s need for accommodation may have been pressing and if Quetta’s city government wanted to help, then other suitable options should have been considered, instead of making an easy prey of a hostel of educational importance. The Balochistan government must look into the matter and ask the FC troops to vacate the youth hostel and provide alternative accommodation to them elsewhere.