‘Industrialisation policy to be framed to boost exports’
Besides textile, focus will also be on engineering, chemical, IT and agriculture sectors
Besides textile, focus will also be on engineering, chemical, IT and agriculture sectors. PHOTO: FILE
FAISALABAD:
Pakistan’s exports have remained restricted to textile but a comprehensive industrialisation policy is being planned now where focus will also be on engineering, chemical, information technology and agriculture sectors, revealed Adviser to Prime Minister on Commerce and Industry Abdul Razak Dawood.
Speaking to members of the Faisalabad Chamber of Commerce and Industry (FCCI) on Tuesday, the adviser pointed out that over the last decade, many industrial units had been closed down and the country’s exports had also dropped from $25 billion to $20 billion.
“It is a clear indication that we have ignored our manufacturing sector, which is deemed necessary for wealth and job creation,” he said.
He announced that the government would fine-tune the ‘Made in Pakistan’ policy in light of proposals and recommendations made by the private sector.
Trade deficit shrinks as exports grow faster than imports
He was critical of the free trade and preferential trade agreements signed with different countries, saying all these had proved counterproductive.
“China, Malaysia, Indonesia and even Turkey have got advantage of these agreements, but we remain a loser,” he said, adding Pakistan was already renegotiating its free trade deal with China, which would be completed in June next year.
Regarding Indonesia, the PM aide said it had given Pakistan duty-free access for 20 goods including denim and asked exporters to cash in on the facility in order to earn heavy foreign exchange for the country.
Dawood revealed that he or Commerce Secretary Mohammad Younus Dagha would visit Malaysia to renegotiate the FTA. At present, the trade balance is in favour of Malaysia as its exports stand at around $1 billion against Pakistan’s exports of only $150 million.
Moreover, he pointed out that he had talked to Japan and it was willing to provide greater market access to Pakistan.
Talking about tariffs and regulatory duties, the adviser said he had decided to review the entire customs tariff and duty structure, which would be made part of another supplementary budget expected to be announced next month.
Pakistan needs to go for high value-added export basket
He was of the view that in principle there should be no duty on import of raw material for manufacturing export goods. Similarly, there should be minimum duty on intermediaries but finished goods should have no concession.
“A meeting is expected in next couple of days in which a new duty structure will be discussed but it should be logical and long-term without any revision for next five years,” he emphasised.
The PM aide assured businessmen that the government would resolve the gas infrastructure development cess (GIDC), Duty and Tax Remission for Export (DTRE) scheme and other issues in an effort to promote regional trade.
Responding to delay in release of tax refund claims, the adviser told businessmen that he was devising a mechanism to clear the tax refunds. “Claimants will get negotiable bonds by the end of January,” he revealed.
In this connection, the State Bank of Pakistan is working on a strategy to pay the tax refund claims within 15 days after receipt of export proceeds.
He declared that gas crisis had already been resolved and a notification for the provision of electricity at 7.5 cents per unit to zero-rated major export industries would be issued soon.
Dawood said the Cabinet Committee on Energy would take up the issue and he would give his input as it would help cut down the cost of doing business in Pakistan.
He was of the view that the government would have to go for an IMF loan facility because of the country’s weak economic condition but voiced hope that industrialisation in next one to two years would stabilise the national economy.
Published in The Express Tribune, December 26th, 2018.
Pakistan’s exports have remained restricted to textile but a comprehensive industrialisation policy is being planned now where focus will also be on engineering, chemical, information technology and agriculture sectors, revealed Adviser to Prime Minister on Commerce and Industry Abdul Razak Dawood.
Speaking to members of the Faisalabad Chamber of Commerce and Industry (FCCI) on Tuesday, the adviser pointed out that over the last decade, many industrial units had been closed down and the country’s exports had also dropped from $25 billion to $20 billion.
“It is a clear indication that we have ignored our manufacturing sector, which is deemed necessary for wealth and job creation,” he said.
He announced that the government would fine-tune the ‘Made in Pakistan’ policy in light of proposals and recommendations made by the private sector.
Trade deficit shrinks as exports grow faster than imports
He was critical of the free trade and preferential trade agreements signed with different countries, saying all these had proved counterproductive.
“China, Malaysia, Indonesia and even Turkey have got advantage of these agreements, but we remain a loser,” he said, adding Pakistan was already renegotiating its free trade deal with China, which would be completed in June next year.
Regarding Indonesia, the PM aide said it had given Pakistan duty-free access for 20 goods including denim and asked exporters to cash in on the facility in order to earn heavy foreign exchange for the country.
Dawood revealed that he or Commerce Secretary Mohammad Younus Dagha would visit Malaysia to renegotiate the FTA. At present, the trade balance is in favour of Malaysia as its exports stand at around $1 billion against Pakistan’s exports of only $150 million.
Moreover, he pointed out that he had talked to Japan and it was willing to provide greater market access to Pakistan.
Talking about tariffs and regulatory duties, the adviser said he had decided to review the entire customs tariff and duty structure, which would be made part of another supplementary budget expected to be announced next month.
Pakistan needs to go for high value-added export basket
He was of the view that in principle there should be no duty on import of raw material for manufacturing export goods. Similarly, there should be minimum duty on intermediaries but finished goods should have no concession.
“A meeting is expected in next couple of days in which a new duty structure will be discussed but it should be logical and long-term without any revision for next five years,” he emphasised.
The PM aide assured businessmen that the government would resolve the gas infrastructure development cess (GIDC), Duty and Tax Remission for Export (DTRE) scheme and other issues in an effort to promote regional trade.
Responding to delay in release of tax refund claims, the adviser told businessmen that he was devising a mechanism to clear the tax refunds. “Claimants will get negotiable bonds by the end of January,” he revealed.
In this connection, the State Bank of Pakistan is working on a strategy to pay the tax refund claims within 15 days after receipt of export proceeds.
He declared that gas crisis had already been resolved and a notification for the provision of electricity at 7.5 cents per unit to zero-rated major export industries would be issued soon.
Dawood said the Cabinet Committee on Energy would take up the issue and he would give his input as it would help cut down the cost of doing business in Pakistan.
He was of the view that the government would have to go for an IMF loan facility because of the country’s weak economic condition but voiced hope that industrialisation in next one to two years would stabilise the national economy.
Published in The Express Tribune, December 26th, 2018.