KARACHI, July 23: Business leaders have termed the Trade Policy 2004-05 growth and export-oriented having special features to meet the challenges in the post-quota regime starting from January 2005.
Barring a few segments of trade who expressed their dissatisfaction over the measures adopted in the Trade Policy, all the other sectors of trade and industry generally appreciated the policy and responded positively.
Karachi Cotton Association chairman Iqbal Umer said that the policy was fully designed to meet the challenges in the post-WTO regime. He said it carried sufficient incentives to attract foreign investment as it provided relief to the value-added sector.
He observed that the government had offered various measures for increasing the volume and base of the country's export, further liberalizing the import regime. The KCA chief appreciated the decision to remove the ban on import of cotton waste that would help provide incentives to the value-added sector. He, however, expressed his concern over sales tax on import of cotton and urged the government to remove the same.
Mr Umer also seeks early announcement of the cotton policy as the new season is about to commence. He said the export target of $13.7 billion was achievable and only sustained efforts of the government and the private sector were needed.
Karachi Chamber of Commerce and Industry acting-president Muhammad Saeed Shafiq hailed export promotion measures and enlarged scope for import and said these steps would go a long way in accelerating the aggregate growth rate of the economy.
The KCCI acting chief also appreciated the decisions with regard to extension of the existing 25 per cent export freight subsidy till September 2005 and rehabilitation of infrastructure of the existing industrial estates with funding up to 50 per cent from the federal government.
Mr Shafiq termed the extension of monetary limit from $10,000 to $25,000 for export samples of non-restricted items and the limit of gift parcels value from $1,000 to $5,000 positive decision that would help boost export in the long run.
He expressed the hope that thebusiness community would take full advantage of the new policy framework and the government would ensure its implementation in letter and spirit to accomplish the export target of $13.7 billion.
Pakistan Cloth Merchants Association chairman Abid Chinoy termed the policy liberal, growth-oriented and balanced. He said the export target of $13.7bn was quite ambitious but was achievable if continuous and concrete efforts on the part of government and the private sector were made.
However, Pakistan Tanners Association chairman S.M. Naseem expressed his dissatisfaction at the trade policy and said no facility or incentive had been given to the leather industry that clearly proved that this value-added and foreign exchange earning sector had been totally ignored.
He said the PTA prior to the announcement submitted well-considered proposals for the Trade Policy but none had been entertained. Mr Naseem requested to the commerce minister and the EPB chairman to take stock of the situation seriously and come forward to help the leather industry sustain and play its viable role in the promotion of exports.
He drew the attention of the commerce minister towards the issue of payment of Rs106.15 million out of the committed fund of Rs334 million from the EDF for the completion of Combined Effluent Treatment Plan at Korangi, Karachi, which was essential for meeting the challenges of WTO regime.
He reiterated his five demands made prior to the announcement and said only then the leather industry could play its real role in the growth of exports and generation of employment.
Sultan Ahmed, former chairman of the Pakistan Hosiery Manufacturers Association, said the Trade Policy would help export sector face the challenges of quota-free regime.
He said the new policy would go a long way in meeting the challenges and assist exporters to capture new markets. The most important factor, he said, was that the new policy would help meet the social compliance in the post-quota era.