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Export growth only option

RECORDER REPORT

KARACHI: "The game is over for import substitution policy, and now export growth is the only option," State Bank Governor Dr Ishrat Hussain said on Wednesday.

He made this remark during a meeting with the FPCCI leaders, when his attention was drawn to the continued reduction in import tariff, on the asking of donors and WTO, which is endangering the existence of domestic industry.

Engr. M A Jabbar pointed out that bad policies and continued breach of commitment of tariff since 1997 is the key reason for the situation. Non-resolution of issues restrains the entrepreneurs from adding to the present activities, he said.

The Governor said he wondered that when during 1994 to 1999 exports remained stagnant, how the export re-finance had tripled. He said he could not find any good reason to support the increase of public money as re-finance against no service to public interest.

He said that he has been apprised of misuse of export rebate claims and asked FPCCI to unearth such unscrupulous elements and help the country from abuse of such practices which are detrimental to the public interest.

The Governor said he recognised that profit making forecast and actual earnings as instruments of promoting economic activities.

He did not support distortions created by SRO culture to the benefit of a few, and said he supported clear policies to provide realistic growth for all elements of economic activity.

He further said that non-regulated tax laws are also a problem where from certain groups and individuals are benefited by way of amendments which is not fair.

The governor said he has come after 20 years to his own country and wished to share the ideas with FPCCI and trade bodies for policy formulations.

He said that he is concerned with non-repatriation of export proceeds to the tune of $250 million which otherwise should add to the marginalised reserves to repose confidence of foreign investors.