KARACHI, June 27: Delay in creating conditions for adopting social compliance under WTO regime on labour, environment and security for the industry seems to be hampering exports, which could easily touch $15 billion mark within next two to three years.
At present industrial units are confronted with double compliances — one from the government agencies such as SESSI, labour department, Civil Defence, etc., and the other from foreign buyers, who do not certify a factory that does not meet their compliances, thereby deprive them of export orders.
In the year 2005, when WTO regime will come into effect and quota free era will start, the binding from foreign buyers is expected to be even tougher. And for which it is imperative that the government comes up with the only solution of one-window for dealing in social compliance.
The Ministry of Commerce convened a meeting in third week of April and was attended by representatives from half a dozen other ministries to discuss issues of social compliance vis-a-vis local industry.
Though in the meeting it was transpired that a high-powered task force under the chairmanship of commerce minister will be established, so far no tangible progress has been made. According to terms of reference, the task force was supposed to identify areas, form strategies and create awareness among exporters about the upcoming challenges and the ways to counter them.
However, some exporters disclosed that the Ministry of Commerce issued a circular in the first week of this month asking them to nominate their representative to the task force. But what is disturbing is that with less than 18 months remained for the start of WTO regime, the matter is still at a discussion and planning stages.
On the other hand, exporters continue to give distress calls to the government about the highhandedness and coercive measures being adopted by various federal, provincial and local government departments that collect different taxes and levies.
Exporters have been long demanding of the successive governments for the consolidation and collection of all sort of taxes at one source or window. In the presence of innumerable agencies they are not only harassed but their precious time is wasted.
The business community hailed the announcement of a new Punjab industrial policy eliminating inspections by labour inspectors, revising the social society system and withdrawing education cess.
Pakistan Hosiery Manufacturers Association (PHMA) central chairman M. Zubair Motiwala said the bold decision taken by the Punjab chief minister would help remove problems and hurdles being faced by industry in the province.
He said the Sindh government should immediately come out with a realistic and revolutionary industrial policy by eliminating such departments that caused hurdles and retard industrial progress.
Mr Motiwala said in Karachi industry was suppressed and burdened with harassment by innumerable agencies and multifarious problems faced by them with regard to water, electricity and other infrastructure problems.
Former chairman of Pakistan Bedwear Exporters Association (PBEA) Shabir Ahmed said time had come when the Sindh government should also clip the wings of such institutions like SESSI, labour department, etc., as they caused a lot of harassment and wastage of time for export trade. He said all such institutions were working on old rules that are no more relevant with present conditions.