KARACHI, Sept 8: Overseas business support units will be set up under the umbrella of the Trade Development Authority of Pakistan (TDAP) in a bid to strengthen overseas markets for the promotion of country’s exports.
The units will be run jointly by the public-private sector, official sources said on Friday.
There is a growing concern amongst economic planners that without registering a quantum jump in exports, the country could not sustain its high growth. Consequently, a task has been given to the Planning Commission to draw a roadmap for achieving a major breakthrough in exports within next couple of years.
The Planning Commission has constituted a committee headed by Tariq Ikram, Minister of State and Chairman of the Export Promotion Bureau (EPB). According to initial working made by this committee, a target of $40 billion exports during the next five years was likely to be achievable.
The sources said the setting up of these units was part of this scheme which would be used to record a quantum jump in exports by adopting short and long-term strategies. Initially, these units will be set up in six countries as a pilot project.
The Federation of Pakistan Chambers of Commerce and Industry and the Foreign Office were being taken on board for this project because their assistance and expertise would be needed, the sources added.
The units will be run on self-financing basis with only first two years and the government’s financial support will be there to pass the gestation period smoothly.
These business support units will be run by the local people of that country and their remunerations will be linked with their performance based on quantum of import orders generated by them. It is expected that the units in three years time will start generating fresh export orders to the tune of $1 billion per annum for country’s exporters.
The operations of these units will be closely monitored by the TDAP which will be equipped with high-level technology to run its affairs.
The TDAP is awaiting legislation, but sources said a preliminary work was in advanced stage, as the government wanted to ensure that exports were taken full care of and should record a quantum jump to arrest the ever-rising trade gap.
The economic planners are well aware of the fact that if the country does not increase its exports in coming years, a sever crisis could emerge and this will further deteriorate the trade gap, as job opportunities totally depend on exports.
The sources said high-level technology would be inducted at every operating level of the TDAP, adding that more than 50 per cent procurement had been already made. They said almost all the required hardware and software had been procured.
Similarly, the EPB has been geared up to update its records and systems for the induction into the TDAP. Arrangements are afoot to use other tools for expanding exports by establishing virtual exhibitions. Interactive facilitation and infrastructure will be made available to the exporters, and trade fairs and exhibitions will be arranged.