Free trade imperative for growth

Govt is promoting exports by tapping new markets, resolving business issues

LAHORE:

Federal Minister for Industries and Production Syed Murtaza Mahmud has said that technological advancement has great importance in economic growth and the government is focusing on facilitating the local manufacturers to create employment opportunities and promote exports.

“The government wants to take the country forward by ensuring sustainable economic growth and the role of private sector is crucial,” Mahmud said, adding that the Ministry of Industries was also playing a proactive role for swift development of small and medium enterprises (SMEs).

The minister made the remarks in a meeting with Lahore Chamber of Commerce and Industry (LCCI) President Mian Nauman Kabir.

In a separate meeting, Federal Minister for Commerce Syed Naveed Qamar said that export-led growth was the real aim of the government, for which free trade would
be imperative.

He said that the Ministry of Commerce was committed to promoting exports by tapping new markets and resolving the issues being faced by the business community.

The minister stressed that the government was constantly working to connect Pakistan with the global supply chain to
enhance trade.

A meaningful partnership between the government and the private sector was the key to achieving the desired economic goals in the shortest possible time.

It was the crux of the two meetings where the ministers shed light on the initiatives taken by their ministries.

Economic and industrial growth, issuance of import documents, export promotion, conducive environment for business, feasible policies and incentives for trade and industry came under discussion.

LCCI President Mian Nauman Kabir said that the recent performance of large-scale manufacturing industry, which grew 11.7% in July-May 2021-22, was a good sign and the credit went to the Ministry of Industries. “This performance can become even better if required measures are taken as per recommendations of the private sector,” he said.

Kabir apprised the ministers of the delay by banks in releasing shipping documents and hoped that they would play their role in sorting out the issue after consulting with the State Bank of Pakistan and the Ministry of
Maritime Affairs.

He underlined the need for establishing Export Processing Zones (EPZs) and Special Economic Zones (SEZs) in Lahore. “Current EPZs in Punjab are not very active. In the present economic scenario, EPZs and SEZs can play a key role in speeding up the process of industrialisation and enhancing export earnings.”

He pointed out that the LCCI had always advocated for the development of SEZs and EPZs throughout the country, especially for the technology-intensive industries like engineering goods, pharmaceutical products, surgical instruments, sports goods, etc.

Kabir was of the view that SMEs, particularly in the engineering sector, had not been able to contribute adequately to the country’s exports due to the limitations on access to technology. “There is a dire need to improve SMEs’ access to technology as they get less than 6% of private sector credit,” he said.

In light of the recently introduced SME Policy 2021, the major programmes being initiated for improving access to finance should be shared with the stakeholders, he stressed.

“It will be a great honour for us at the LCCI to have better representation on various boards being supervised by the Ministry of Industries like the Engineering Development Board, Export Processing Zones Authority, National Productivity Organisation and Pakistan Gems and Jewellery Development Company,” the LCCI
chief added.

He pointed out that the cost of land for the business community in the industrial estates had reached exorbitantly high levels and underlined the need for a simple lease policy through which land in the existing and new industrial estates could be provided at reasonable rates on long-term lease, particularly for
the SMEs.­­

Published in The Express Tribune, July 23^rd, 2022.

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