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Fellow
Citizens, Ladies & Gentlemen,
It is my privilege to submit to you the Trade Policy for the current fiscal year
the third to be presented by this Government.
2. Almost
three years ago when this Government assumed its responsibilities we went about
the onerous task of gauging your aspirations, the direction you wanted this
Government to take and the kind of policies you wanted. In the area of trade
and investment we sought out advice on policy preferences with the aim of enabling
the business community of Pakistan to unleash all its energies to secure for
Pakistan rightful place in world Trade.
3. Through an intense interaction with as many stakeholders as was possible
we could distill the following principles of policy formulation:
First, Consistency of policies. Indeed, many businessmen reminded me that they
could perhaps live with bad policies but not with shifting policies, Second,
Market driven policies, with only a minimal government intervention to balance
the imperatives of equity and social justice.
Third,
Liberalization, deregulation and reducing the cost of doing business in Pakistan.
Fourth,
Stable macro-economic framework, especially in terms of inflation, interest
rates, and exchange rate, and
Finally
a vision, a road map, developed in concert with the stakeholders, for our trade
and industrial growth.
4. Your
government has, in all earnestness, tried to follow this policy prescription.
Of course, in the ultimate analysis it is only for you, for the people who bear
the brunt of Government policies, to make the definitive pronouncement; but
Fellow Businessmen, in all humility I do hope you will share my belief that
we have largely stayed on course.
5. Through
the last two years we have sought to make our major export products internationally
competitive, reduce our vulnerability through product and market diversification,
and go up the, value chain. The results are somewhat equivocal; for instance:
Volume
increases in most major products have been quite encouraging: over the last
four years growth has been 30% in yarn, 45% in fabric, 30% in synthetic textiles,
50% in readymade garments, 65% in bedwear, and 82% in towels. That the total
value of our exports has not shown a corresponding increase is a reflection
of the deteriorating terms of trade that Pakistan is faced with.
Unit prices
have been generally lower, despite the strengthening of Pak Rupee. In the textile
sector this has been partly a function of lower cotton prices this year, but
largely because it has been a buyer's market. Events following September 11,
too, had a delirious affect which obliged our exporters to 'sell at all cost'.
I would like to commend our exporters for maintaining market share at the expense
of profitability. We all know market share is vital; profitability can always
improve in due course.
In market and product diversification at first glance our achievements appear
to lack luster: share of the top twenty markets and products in our total exports
remained almost unchanged at 80.1 and 89.5 percent respectively. But, then a
deeper analysis does bring out unmistakable signs of growth - even if small
- in several non-traditional markets and products. Over last year we see growth
in such non-traditional markets as South Africa (15%), Greece (17%), Kenya (123%),
Mexico (52%), There have also been impressive gains in Yemen, Jordan, Iraq,
Poland, Austria and Tunisia. Again, in non-traditional products we see major
gains in Molasses (64%), Footwear (32%), Electrical machinery (52%), Petroleum
products (18%), Oils sees and nuts (72%). Our kindergarten products like electric
fans, autoparts and furniture have also posted increases of 59, 28 and 33 percent
respectively. Export of wheat and its milled products went up by 270% to $ 122
million.
In value-addition
the sector that has done well is the textiles sector, thanks, largely to the
substantial investment that our exporters have made in new machinery and equipment.
The Cotton policy that permitted generally stable prices and free import of
superior cotton also made in important contribution. As a consequence of all
this the share of value-added products in our textile exports i.e. madeups and
garments has gone up from 54% last year to 57% this year. In other sectors we
clearly need to do a lot more work.
One particularly encouraging factor has been the 49% increase in Foreign Direct
Investment his year. Getting almost within striking distance of our target of
half a billion dollars is reassuring especially in view of the unfavorable climate
ushered in by the September 11 events. With this FDI. and noncommittal domestic
investment, we are better poised for our value addition objective.
6. Ministry
of Commerce had developed five year roadmaps ('Vision') in respect of four major
products groups i.e.. Textile, Leather, Horticulture and Rice. We have nor carried
out a mid-term review of these 'Vision'. While not all the milestones have been
reached the overall trend is reassuring. There have been encouraging levels
of capital investment in Textile, Horticulture and Rice sectors; the regulatory
framework in all these sectors has been eased; and greater market access (except
certain categories of Textile) secured. We have now undertaken preparation of
road maps for the Engineering and Chemical sectors.
7. I may
add here that in all these areas - competitiveness, diversification, and value
addition - our efforts are constrained by fiscal and reform imperatives; l but.
More importantly, these efforts are of a long-gestation nature where real results
will manifest themselves only with consistent application over a sustained period
of time.
Ladies
and Gentlemen,
8. Before
I come to the specific measures of Trade Policy 2002-2003 an objective review
of the preceding year, with as much emphasis on failures as successes, would
be in order.
9. During the year 2001-02 we managed to shave off our trade deficit by 21%
to bring it to $ 1.2 billion, which is the lowest in the last 25 years. Our
imports were lower by 4 percent. This was largely a function of softer crude
on and tea prices and the much lower sugar imports - only $ 23 million compared
to $ 252 million last year. Import of textile machinery continued its growth
and was up by another 10%. There was an encouraging growth of 43% in import
of construction and mining machinery, including that used for oil and gas exploration.
The 20% increase in import of iron and steel is an indicator of increase in
construction activity, as also, to a certain extent, revitalization of the engineering
industry. Overall steel consumption during the preceding year grew by about
10%.
10. Exports
during the year are about the same level as last year i.e. $9.1 billion. We
did not achieve our original target of $ 10 billion. But given the most extraordinary
developments of the years who can deny that achieving even last year's level
is a tribute to the hard work and enterprise of our exporters. Let us not forget
that following September 11 we were all fearing the worst. Prospects for our
exports looked very grim indeed. During the year we witnessed.
- September 11, and its consequential developments. These included cancellation
of orders, difficult buyer-contact (because of travel advisories on the one
hand and visa restrictions for Pakistan exporters on the other). Imposition
of War Risk Insurance, description of airline services, and an overall situation
where our goods could be sold only at low prices as the buyers perceived Pakistan
to be an unreliable sources of supply.
- Recession in the US and European markets, particularly in the textile sector.
- Falling
prices of main commodities like raw cotton, rice, and petroleum based products.
- Contraction
in exporter profitability as a result of an eight percent revaluation of Pak
Rupee, roll-back of implicit subsidies like Export Finance, and Duty Drawback
Rates, and above all the problem of sales tax refunds that continued to plague
the exporting sector.
11. These
developments constrained us to drastically curtail our export target. That we
were able to recover and achieve the same level of exports as last year, despite
all the odds, testifies the grit, determination and resilience of our exports.
On behalf of the national I salute them.
12. Ladies
and Gentlemen in last year's Trade Policy we had introduced several structural
changes to ensure a sustained growth of exports. By and large we are on track.
However, in certain areas we could not make sufficient progress. We intend to
intensify our efforts in these areas. The particular initiatives of last year
that we propose to work further on are the following:
- While
we did manage to secure appreciable market access gains in the European Union
and some in the US - and to a small extent in Turkey (Textiles), Egypt (Wheat)
and the Philippines (Rice) - and we managed to respond fairly quickly to the
developments in Afghanistan to put in place zero rating facilities, we need
to do much more. Without doubt securing for our exporters greater market
access is one of the most fundamental responsibilities of the Government. Here
I must remind you that market access has been a totally new field of endeavour
for Pakistan. We did not have the tools and we did not know the technique. There
were no past initiatives to guide us. We were breaking new ground. It took us
some time to develop the necessary expertise. During the year we hope to be
able to conclude Free Trade Agreements with certain countries and initiate negotiations
with others. We will vigorously seek removal of non-tariff barriers, particularly
for our agricultural products, and adopt a more pro-active role in regional
trading arrangements.
This year we are launching a special campaign to focus on Africa, where our
current export levels do not match the growing potential of the African markets.
Through a combination of market access enhancement initiatives. Strong promotional
measures, and supplier credit arrangements we propose to increase the share
of African markets in our exports by at least 20% Sufficient funds for this
special effort have been earmarked.
- On 16th
July last year we launched the Pakistan Export finance guarantee Agency. In
November the Foreign Currency Export finance scheme got activated. My feed-back
is that there have been only limited gains from these export finance instruments.
We propose to build on the experience that we have gained and refine these instruments
further. We also propose to work on a viable exchange rate cover. or an exchange
insurance scheme. to maximize use of lower cost dollar denominated export finance.
- The Cabinet has also authorized preparation of a feasibility report for an EXIM Bank. A committee headed by the Governor State Bank and consisting of Secretaries
Finance and Commerce has been set up. Committee will submit its report to the
Cabinet by March 2003.
- We just have not been able to make a headway in our warehousing abroad initiative.
We are redesigning the scheme in order to induce greater exporter interest in
this important marketing tool.
- Our on-shore capacity building plans, especially for the Small and Medium
enterprises, still require a lot of work. Ministry of Commerce's own capacity
constraints have inhibited progress in this area. We have now been able to identify
our weaknesses and take remedial measures. I am confident we will be able to
step up our efforts to contribute to the capacity building of our exporting
enterprises.
- I had strongly emphasized last year the compelling need for our exporting
units to comply with the requirements of the buyers to produce their goods in
a socially acceptable environment. This assumes an even greater importance as
we approach the end of textile quota regime at the end of 2004. We will intensify
our work with exporters on the social compliance matters and substantially increase
the number of compliant exporting units. Sufficient funds are being earmarked
in the EDF to share the SA 8000 certification costs and other allied expenses.
We are also providing a platform for creating greater awareness and for sharing
with the buyers the progress we are making in the area of social compliance.
- In pursuit of quality improvements, greater value-addition, and product and
market diversification objectives, businessmen have to take on more responsibility
for managing the strategic direction. Hence the importance of the various Boards
that we proposed to set up. We expect the businessmen from the relevant sectors
to come forward and own these Board. We will continue our efforts with the other
Boards and extend this initiative to Sports Goods, Surgical Instruments and
Seafood sectors.
- Work on the Trade Facilitation project that we initiated last year is at an
advanced stage. Several legal instruments have been drafted and are being examined
by the concerned agencies. With the completion of this exercise we will be able
to minimize cost of doing business, provide for a much faster clearance of goods,
and ensure the predictability and transparency of the system.
13. In
the context of review of some of the measures initiated last year it will be
pertinent to reiterate that waiver of Export Development surcharge for small
exporters and those who exceeded their exports by more than 10% will get activated
this year now that their export figures for the year have become available.
14. Ladies
and Gentlemen, I now come to our projections for 2002-2003.
15. Based
on the assumptions discussed later we expect the trade deficit to shrink further
to US$ 0.7 billion. Imports are projected to grow by 7.4% to $ 11.1 billion.
16. On
the export side we are fairly confident to, Inshallah, breach the elusive $
10 billion mark for the first time. We are looking at total exports of $ 10.347
billion, a 13.4% increase over the preceding year. Besides the specific export
enhancement measures that I will presently be sharing with you, greater market
access, spin-off from investments in textile sector, and a continued inventory
build-up in Europe and USA are the supporting factors. Under-lying assumptions
are that the exchange rate will remain stable to favourable, that there will
be a greater access to export finance, that the international raw cotton prices
will remain close to current levels, and that the trade environment will not
be faced with any unforeseen challenges.
17. Let
me share with you here the broad parameters our strategy.
18. It
will be recalled that in our last two trade policies we had made a deliberate
departure from the traditional 'fiscal incentives' approach to 'policy direction'.
To the extent desirable we propose to persevere with this. Thus, for the current
year we will build upon our National Export Strategy, whose main elements are
- Sound
macro-Economic framework
- Capacity development of exporting enterprises
- Enhanced market access.
- Reduced anti-export bias
- Improved social & physical infrastructure
- Deregulation and 'decongestion'
- Lowered barriers to fresh entry (new generation of exporters)
Ladies
and Gentlemen:
19. While
several of our competitors continue to subsidize their exports Pakistan has
been following a policy of subsidy roll-back. We believe that subsidies have
a distortionary affect and that competitiveness can and ought to be ensued through
the exchange rate mechanism. For a variety of reasons this has not happened.
Exchange rates are increasingly determined by market forces and there are limits
to State Bank intervention. Clearly, therefore, we need to put in place a countervailing
system to offset the subsidies available to competitors, and neuteralise, to
the extent possible, such cost penalties as inadequate physical infrastructure,
high price of utilities, and in-competitive interest rates. Also were have to
accept the reality that our prices will remain under pressure which will further
squeeze exporters' profit margins.
20. Our
fiscal and other imperatives do not give us much room for maneuver but within
these constraints we are taking the following specific measures to mitigate
the competitive disadvantage that Pakistan exports are faced with
1. Duty and Taxes Remission for Export (DTRE) Rules 2001 are being revised to
make them more user friendly. It is also intended to consult with CBR to find
a way to allow duty draw back and sales tax refund on domestically procured
tax-paid inputs in sectors where there is an unavoidable reliance on substantial
domestic procurement. With a workable DTRE regime in place the problem of delayed
sales tax refunds will be automatically minimized.
ii. It
is proposed to bring about reasonable parity in the concessions available to
the Export Processing Zone and Export oriented units, defined as enterprises
that have exported, on an average. 60% of their production during the last three
years. Cabinet has set up an inter-ministerial committee to consider maximum
possible facilities to Export Oriented Units.
iii. New
Products and New Markets. In order to strengthen our drive for product and geographical
diversification it has been decided to give.
a. Freight
subsidy of 25% for 'new products' i.e. products whose annual export has not
been more than $ 5 million in any one of the last three years. Similar freight
subsidy will be provided for new markets i.e. Latin America, Africa, East Europe
and Oceania; or for any country where Pakistan's total exports have averaged
less than $ 10 million in the last three years, and
b. Apply the lowest rate of presumptive income tax (i.e. 0.75%) in respect of
these new products and markets.
iv. The
Agricultural Produce Cess that was being levied at the rate of 0.5 percent ad
valorem on export of a number of agricultural products under the Agriculture
Produce Cess Act, 1940 is being done away with.
Ladies
and Gentlemen:
21. Export
Processing Zones are important export promotional tools. Unfortunately our export
processing zone is not upto par and compares most unafavourably with similar
zones in the region. We intend to set things rights. Cabinet has allowed trading
activity in KEPZ, with the exception of a negative list being notified separately.
This will enable exporters to have duty-free input goods available to them on
a 'Just In Time' basis. Also, greater re-exports will take place, especially
through the 'consolidation business'. Cabinet has also set up an inter-ministerial
committee to examine the tax regime available to the KEPZ, as also restricting
custom duties to imported inputs only.
22. Our
Karachi export processing zone is weak in terms of facilitation as well as availability
of the kind of facilities that investors are used to in other zones in the region.
We need to bring this Zone at par with competition. I have ordered preparation
of proper plans to upgrade KEPZ facilities to regional standard. A steering
committee for this purpose is being notified separately. I have also directed
to KEPZ management to review its various charges and fees with a view to checking
disincentives.
23. The
Cabinet has also approved, in principle, to make Gawadar a Free Trade Zone.
Necessary instruments in this regard are being prepared.
24. Ladies
and Gentlemen, this Government had promised maximum liberalization and deregulation.
My last tow trade policy speeches had include several such measures.
In the Same vein I Would now
like to announce the following trade regime improvements.
i. The
compulsory requirement for an exporter or importer to register himself with
EPB before he can undertake trading activities is being done away with. Repeal
of Exporters & Importers Registration Order is being notified along with
consequential amendments in the relevant rules and regulations.
ii. Intellectual
Property Rights
We have
recently revised our laws governing Intellectual Property Rights (Trade Marks,
Patents, Copyrights, Integrated circuits layout and industrial designs). Violation
of intellectual property rights acts as a deterrent to foreign investment, causes
considerable leakage of revenue, and is disincentive for creative work. We are
determined to ensure better protection of Intellectual Property Rights. We have
also noticed that certain provisions of the Pakistan Penal Code (PPC) overlap
with those of the Trade Marks Ordinance (TMO) but are not consistent with each
other. for instance, PPC does not provide for minimum punishment but TMO does;
the offences under the relevant PPC sections are cognizable while under the
TMO they are not. In order to remove uncertainty and ensure better enforcement
it is proposed to bring about consistency between the two laws. Necessary ordinances
are being submitted for Cabinet's consideration.
While we
have vastly improved upon our legal framework we have done nothing to upgrade
our institutional arrangements for expeditious and effective processing of Intellectual
Property cases. Quite frankly, the working of our copyright, trade mark and
patent offices is unsatisfactory and desperately calls for a major revamp. We
are accordingly setting up a Pakistan Intellectual Property Rights Organization
(PIPRO) that will service all the intellectual property rights requirements
under one organization. This will be a self-financing and autonomous organization
manned by professionally qualified persons. Necessary infrastructure in keeping
with contemporary requirements shall be provided.
iii. It
has been decided to enhance the monetary limit on export of samples to $ 10,000
from the existing $ 5,000.
iv. Export
of petroleum products is currently limited to public sector agencies. It has
been decided to remove this restriction and make petroleum products freely exportable.
v. it has
been decided to do away with the current restriction of minimum export price
for Rice as recommended by Rice Exporters Association. Pre-shipment quality
check for Basmati Rice shall continue in order to safeguard its image in international
markets.
vi. Currently
bulk imports of Gold/Silver are controlled through licensing by Ministry of
Commerce, even though in such cases importer arranges for his own foreign exchange.
Six parties are currently licensed. It has been decided to do away with the
licensing requirement and allow import of gold/silver in bulk so long as the
importer manages his own foreign exchange. Normal duties and taxes will, of
course,
be applicable.
vii. Import
of essential spares, when airlifted/couriered, by industrial users against foreign
currency demand draft has a limit of $ 15,000 per annum. This limit is being
increased to $ 30,000. Exporters may import spares etc. beyond this limit subject
to a cap of 5% of their last year's exports.
viii. As
per current regulations mobile phones are importable by the companies having
agreement with the concerned government agencies for supply of mobile phone
facility, recognized manufactures and their authorized agents. These will now
be freely importable. Government levies will be automatically collected at the
time of activation of the mobile telephones.
ix. Currently
import only such plastic scrap is banned as is used for polyethylene bags. Other
types of plastic scrap like polypropylene and polyvinylchloride are importable.
Mindful of our obligations under the Basel convention, that imposes restrictions
on clinical and hospital waste, import of all plastic scrap will henceforth
be subject to certification from the exporting country that the scrape does
not include hazardous waste.
x. Other
light oils and preparations, mineral oils and lube base oil are currently importable
only by industrial consumers/approved blending plants, These restrictions are
being removed to make these products freely importable.
xi. Pakistan
is a signatory to the Montreal Convention that requires, ineralia, a phased
elimination of use of ozone depleting substances (ODS). One such substance is
CFC gas (used in air-conditioning and refrigeration). Whose use is required
to be eliminated by 2010. While we have started to regulate the import of CFC
gas. It has been decided to ban the import of CFC gas based refrigerators and
deep freezers.
25. Cotton
remains the backbone of our exports and our most valuable asset. Indeed our
reliance on it is growing. Thanks to the new investments made in the textile,
sector our industry now estimates its cotton consumption to exceed 11.5 million
bales this year. We thus not only have to strive for greater production, and
at a price that is unfair neither to the grower nor the industry, but also to
bring about significant quality improvement. We have already taken certain important
steps in this regard, including open trade, production of contamination free
cotton and better regulation of production and ginning. In furtherance of these
objectives following measures are being taken
i. After
the encouraging experience in the model districts of Rahim Yar Khan and Ghotki,
the clean cotton campaign for this season has been extended to Bhawalpur, Sanghar
and Nasirabad districts.
ii. Ginning
is the weakest link in our supply chain, Factors such as outdated technology,
poor infrastructure, and the temptation to run equipment beyond normal life
combine to impair quality and increase the wastage levels. Over-capacity is
an allied impediment and there has to be a restructuring. The days of ginning
being more of a trading activity must end. It now needs to transform itself
into a professionally run Industry. We propose to approach these issues through
a much more rigorous enforcement of the Cotton Control Act on the one hand and
professional advice and counseling on the other. For the latter SMEDA already
working on a pilot project with three volunteering ginneries. We also hope to
be able to encourage a greater number of growers to Government for custom ginning,
and use moral suasion with APTMA to source their supplies from the most 'compliant'
ginneries.
iii. Agricultural commodities by definition have a supply and demand disequilibrium
commodities are harvested over a short period of time while their demand is
year round. The oversupply during the harvesting months produces a glut that
causes a depression of prices. Mechanism of 'Support Prices' is an inefficient
substitute that does not balance producer consumer interests as generally it
hurts one or the other.
The State
Bank of Pakistan in its report for the year 2001-2002 emphasizes the need for
a futures market in cotton as it would mollify seasonal price fluctuation; provide
a benchmark for growers, ginners, textile manufacturers and exporters; reduce
speculative trades; reduce credit risk for borrowers; and improve information
flows.
Forward
trading in cotton was introduced in the Karachi Cotton Association in 1934 and
was managed satisfactorily until 1975-76 when the Government nationalized the
ginning factories.
Ministry
of Commerce had set up a committee of stakeholders to examine various aspects
of futures trading and to suggest an appropriate mechanism for its introduction.
The Committee's report has been received. We propose to put in place the legal
instruments required for the futures market during the years.
iv. Draft
law for standardization of cotton has been prepared. This will not only help
improve the image of Pakistan Cotton in the world markets but also bring about
a more sound basis for cotton trading in Pakistan.
Ladies
and Gentlemen
26. The
export concessions and trade regime improvements that I have talked about are
going to be supplemented with important other facilitation measures. I would
like to share these with you.
27. Fixation
of duty-draw back rates, and their timely revision, has been a matter of concern
for the exporters. To fix duty-draw back rates on a professional basis government
has set up, under the CBR, the input-output co-efficient organization. In order
to assist the exporters an inter-ministerial committee to examine the feasibility
of putting the input-output co-efficient organization under the administrative
control of EPB.
28. Currently
Export Development Surcharge (EDS) is collected at the time of shipment. This
causes inconvenience to exporters, particularly when under/over shipments are
involved, CBR is being directed to collect EDS through the receiving banks upon
remittance of export proceeds, as is done in the case of export income tax.
29. At
present our exports by road are negligible. This places our exporters at a serous
disadvantage, especially for the regional markets. Cabinet has accorded its
approval to Pakistan ratifying the Istanbul Convention and accession to the
TIR convention. This along with adoption of ATA Carnet system, will provide
for easier transportation of goods to international market by road. Ministry
of Commerce will formalize the necessary arrangements during the current financial
year so that exporters can start to benefit from these initiatives at the earliest
possible.
30. One
of the impediments in our quota management policy is the lack of reconciliation
between Pakistan's export figures and charge s against Pakistan's quota ceiling
as determined by the US authorities. This non-reconciliation results in a virtual
cut on our quota.
While an
intensive interaction with the US authorities has led to our getting 50% of
the disputed quantities re-credited in most of the affected quota categories,
the US authorities require installation of ELVIS (Electronic Visa Information
System) for them to consider further reconciliation. This facility will enable
information on textile quota transactions to be transmitted electronically from
EPB's Computer Network to the US Customs Computer Network, thus eliminating
all chances of fake export licenses (visas) or their misuse. I have asked EPB
to subscribe to this system immediately.
Participation
in Trade Fairs and exhibitions is an important promotional tool. However, it
is expensive and requires considerable administrative and logistical resources.
While we will continue to strengthen our participation in trade fairs - last
year we sponsored participation in 51 international trade fairs - there are
certain categories of products (e.g. stationary products. Wood and glass products,
handicrafts) where the returns are not commensurate with the expanse. We proposes
to introduce the concept of virtual exhibitions for such products. this concept
entails promotion through electronic means and use of satellite telephony.
Ladies
and Gentlemen 32. Last
year I had talked of providing legitimate protection to our industry against
unfair competition. With the recent promulgation of the Safeguards Ordinance,
that follow the anti-dumping and countervailing laws promulgated earlier, the
trilogy of our Trade Remedy Laws is now complete. I may also report here that
just last week we took the fist eve anti-dumping action in Pakistan's history.
The message that I wish to convey is a simple one : we do not mind competition
but we will just not tolerate unfair competition.
33. We
continue to make all possible efforts to make our industry more competitive.
We have further built upon the tariff restructuring exercise initiated last
year and despite the very considerable revenue sacrifice lowered the raw material
duties for a large number of products.
34. Fellow
businessmen I urge you to move forward and use the State Bank facility to officially
invest and secure market share, for our exports, by buying distribution outlets
and brand names, in USA and Europe. However, in the long run it will be a dream
come true when a Pakistan brand is launched in the capital of the industrialized
world. For such an endeavour, whenever it comes about, the government will share
some of the cost.
35. Fellow
Businessmen, I am aware of your concern that in certain cases exports are not
truly zero-rated. I am having such cases examined with a view to finding a fair
solution.
36. Ladies
and Gentlemen, one concern that I have been consistently trying to address is
the gap between promise and performance, between policy and its implementation.
I have not always succeeded but I assure you it has not been for want of trying.
Governments the world over are complex organizations and it is not always easy
to hasten the processes that characterize large organizations. Although I like
to think we have come a considerable way, and that the response time is much
quicker now, clearly there is no room for complacence in this regard.
37. Fellow
citizens, while a $ 10.4 billion target in our exports is a considerable improvement
over the export level of $ 7.78 billion in 1998/99, I am convinced it is no
where near our true potential. All through the period that this Government has
been in office we have been trying to focus on the structural weaknesses, so
that we can put our export growth on a naturally foliating and sustainable path.
Let us, together, continue our endeavour.
38. Finally,
I would like to thank all those - and there have been so many of them - who
have so generously responded to my frequent requests for advice and guidance.
Their advice - and their criticism - has been most invaluable to me.
39. Fellow
Businessmen we have moved in the direction as per the policy formulation developed
with you. We are now getting some of our fundamentals correct, particularly
in our major export categories we have started to get some product and country
diversification.
40. Market
access is the centerpiece of government's marketing efforts.
41. Fellow
Businessmen we have many challenges in a difficult scenario. Much more work
is yet to be done over the new few years. However, we are moving forward in
the right direction. I know we can do it and 'Inshallah' we will.
