ISLAMABAD, July 2: The government has decided to offer fiscal incentives to exporters of value-added products during 2003-04 to boost export.
“The new trade policy is likely to be announced on July 15, and it will have fiscal and all other possible incentives for the exporters of value-added products,” said Commerce Minister Humayun Akhtar Khan.
Talking to Dawn here on Wednesday, he said the new trade policy was being finalized keeping in view the ending of multi fibre agreement and the elimination of textile quotas.
Pakistani manufacturing sector, he said, would be made more competitive by providing it necessary facilities in the new trade policy.
He said the exporters needed to be encouraged to help increase the country’s exports for which they would be offered all the government’s patronage and support in the new trade policy.
“The trade policy for 2003-04 will be focusing on sectors, which need growth, and obviously the textile sector will receive more attention in order to increase the exports of value added items,” he said.
About Trade and Investment Framework Agreement (TIFA) signed with the United States, the commerce minister said he had written a letter to Mr Bob Zoellick, US Trade Representative, to convene the meeting of the proposed joint council so that various issues relating to Free Trade Agreement (FTA) could be finalized between the two countries.
“We are being encouraged by the United States to sign an early FTA agreement,” he said, adding that so far only Sri Lanka has signed this agreement with the US.
“The signing of FTA with America will provide us an edge over Pakistan’s other competitors,” Mr Khan said. He did not believe that the United States would be signing FTA with other countries of the region in the near future.
Nevertheless, the commerce minister pointed out that Pakistan would have to effectively enforce intellectual property rights regulations without which it would be difficult to have FTA with the United States.
Mr Khan said the federal government would have to prevail upon the provincial governments to ensure the implementation of intellectual property rights.
Responding to a question, he said the government was also trying to sign FTA with the European Union. “Although the EU does not want bilateral agreements after January 2005 when new WTO regime will be made effective, still we are being encouraged by the EU authorities to have FTA,” the commerce minister said.
He clarified that from January 2005, there would be no more quota, but tariffs would remain there. These tariffs, he said, would gradually come down first in the agriculture and then in the industrial sector.
Asked about granting Most Favoured Nation (MFN) status to India, Mr Khan said this would not be possible unless the Indian leadership start sustainable political talks. “No question of suo moto granting MFN status to India,” he said.