KARACHI, Aug 9: Minister for Commerce Abdul Razak Dawood on Friday said Canadian government would be approached to allow duty and quota free access to textiles as similar concessions had been granted recently to Bangladesh.
Speaking as a chief guest at the inaugural ceremony of the “The TMA House” the minister, however, stressed upon the need for exploring new and non-traditional markets.
He said presently country’s major exports of textiles go to European Union (EU) and the United States, but there was a greater need to move to other markets for which the government will give incentives.
Abdul Razak Dawood asked the business community to evolve such strategies, which are aimed at capturing new markets particularly Latin America, Africa and Australia.
The minister expressed the hope that the new US Trade Law, which empowers the President to negotiate trade deals, would pave the way for greater market access to US markets.
Dawood said that the textile quota matter would be taken up with the US officials when President Pervez Musharraf visits Washington next month. He would address United Nations and meet President George W. Bush.
He asked exporters to form a group that could guide and assist him in framing a basic document for negotiations with the US officials.
He suggested to the exporters’ associations not to demand the withdrawal of 0.25 per cent Export Development Surcharge and instead should seek funds from the EDS for promoting their own boards which should be given the task to prepare their future plans and visions.
“You people are more aware about the problems and issues where as ministers as well as bureaucrats in Islamabad have to come and go but you are there to work and protect your future as well as markets for your products,” the minister maintained.
In response to a point raised by the chairman Towel Manufacturers’ Association of Pakistan Tahir Jahangir the minister assured that by Monday, he will ensure that SRO with regard to collection of EDS after getting export proceeds is issued.
However, Dawood agreed to a suggestion that there should be greater representation of exporters in managing Export Development Fund as well as Export Marketing Development Fund.
The minister also appreciated the proposal given by the TMA chairman Tahir Jahangir that management of Heimtextil, Frankfurt Fair 2003, be handed over to TMA and PCETA. He said the proposal is workable particularly when each trade body has a wealth of experience and know-how in its own field and in its own market.
Dawood lauded last three years performance of several export associations, including bedwear, towels, garments and hosiery and said despite difficult situations in the world markets the exporters managed to give 53.6 per cent growth in exports and 36.8 per cent in term of value.
He hoped that the exporters will keep up their hard work and will start getting better price for the products.
The minister welcomed chairman TMA’s suggestion to allow any country a duty free access to Pakistan’s towel market. He said, “in the past I was given this suggestion verbally but today it has come in writing which is assuring as well as encouraging.”
He assured the participants that no change had been made in free trade cotton policy and any one could import duty free cotton to meet his export commitments. It has been fundamental pillar of the ‘Textile Vision 2005’ to follow free trade cotton policy and the government does not want to create any hurdles at this stage to disturb the smooth working of the policy, he added.
Minister for Commerce expressed satisfaction over the performance of exports over the last five months and said since March 2002, exporters kept moving higher with July recorded highest figure of $816 million. Similarly, he said exports to EU had gone up by 30 per cent.
The most encouraging development, he said, during the out-going year had a 57 per cent growth in value-added textile exports and hoped that by next year it would go up to 59 or 60 per cent.
S M A Rizvi zonal chairman TMA speaking on the occasion was highly critical about the working of Export Promotion Bureau (EPB). He said the bureau has lately assumed the role of revenue collecting agency instead of facilitating exporters and promoting exports.
He said it has started imposing penalties on auction of textile quotas which never has happened in the past.